After a long period of stagnation (around +0.3/+0.4%), the Paris Bourse doubled its gains (+0.79%) at the end of the day, closing the session at 7384 points, driven in particular by Axa (+2.7%), Sanofi (+2.4%) and Kering (+2%), which, according to Bloomberg, has seen Bluebell take a stake in its capital.

Quarterly earnings releases have now entered their most intense phase: among the big European names to have unveiled their accounts before the opening were Swiss-Swedish engineering group ABB (+3.6%), Finnish network equipment supplier Nokia (+1.5%) and French communications specialist Publicis (+2%).

Across the Atlantic, Netflix reported higher-than-expected earnings per share (EPS), but its sales missed the consensus.
Tesla also reacted negatively to its quarterly results, which were better than expected.

Beyond microeconomic news, a number of economic statistics were on today's menu, including the Philly Fed index: the Philly Fed index fell from -13.7 last month to -13.5 in July, its 11th consecutive negative reading, and at a time when the consensus was hoping for a slightly sharper recovery.

The survey's indicators of general activity and new orders remained negative. In addition, the shipments index declined and turned negative. The employment index suggests an overall stable workforce.

Weekly jobless claims fell by 9,000 on the previous week.

The picture looks a little less idyllic with the index of leading indicators, which is supposed to foreshadow the general trend of the US economy over the coming months: it fell again in June (-0.7% to 106.1), notably as a result of the deterioration in consumer sentiment.

In view of the high level of inflation, the tightening of monetary policy and credit conditions, and the reduction in government spending, the ConfBoard predicts a recession in the US between the third quarter of 2023 and the first quarter of 2024.

Finally, sales of older homes in the USA fell by 3.3% last month compared with May, to 4.16 million annualized and seasonally adjusted (SA), according to the National Association of Realtors (NAR).

The median sale price reached 410.200, its second highest level since January 1999, and the inventory of unsold existing homes stood at 1.08 million at the end of June, or 3.1 months at the current rate.

After all these figures, US T-Bonds are down +11pts to 3.85%, our OATs are down +5pts to 3.01%, and Bunds are no better, with +5.3pts to 2.4500%.

T-Bond yields are supporting the Dollar, which is gaining 0.5% against all currencies, while the Euro is down the same amount to $1.1147.

In French company news, Getlink reports net income of 159 million euros for the first half of 2023, more than tripling (+218%) year-on-year, and EBITDA of 496 million (+63%) after a 112 million provision for interconnect profit-sharing.

Publicis Groupe announced an upward revision of its forecasts for 2023, now targeting organic growth of around +5%, an operating margin close to 18% and a Free Cash Flow (FCF) of at least 1.6 billion euros.

On the occasion of its half-year results, real estate group Gecina has revised upwards its 2023 net recurring income (NRI) growth target, now expected to be between 5.9 and six euros per share (instead of 5.8 to 5.9 euros), representing growth of +6 to +8%.

Voltalia announces that it has been chosen by ESB and Bord na Móna, two of Ireland's leading energy suppliers, to provide the engineering, procurement and construction (EPC) services for their solar power plant at Timahoe North, County Kildare.

Thales announces that it has been notified by the European Space Agency (ESA) and the European Commission of 'two major contracts for the cybersecurity of the Galileo Second Generation (G2G) program'.


Copyright (c) 2023 CercleFinance.com. All rights reserved.