CAC 40 below 6,000 points


CAC 40’s morning rebound (+ 0.70%) was short-lived … the 6,000-point bar was quickly destroyed during the session, and CAC 40 eventually fell 1.20% to 5,949 points, the lowest since March 7. It became a value. The bottom of the market at the beginning of the war in Ukraine. Therefore, the market is down 9% and will continue to have six consecutive sessions in the red.

Distrust of risky assets is underpinned by expectations of higher Fed rate hikes … The Federal Reserve Board to meet with the Monetary Policy Committee (FOMC) on Tuesday and tomorrow Wednesday. Officials plan to raise key interest rates by 75. According to information released by The Wall Street Journal on Monday night, this week is a basis point, not 50bp as the market has previously expected. The U.S. Financial Daily did not quote sources, but U.S. central bank officials took into account some recent reports showing that inflation has not only been historically high, but has continued to accelerate. He said he would reconsider their position. Remember that Fed members are currently silent, following the rules of the “quiet period” observed for about 10 days before the FOMC meeting.

Goldman Sachs also expects a 75 basis point rate hike on Wednesday and next month on Monday night, increasing the probability that the federal funds rate target will rise by three-quarters from 30% to 96%. Announced that it was done. Within 24 hours … Oil has risen to $ 124 in Brent and the euro has fallen to $ 1.04 between banks, according to CME’s FedWatch barometer.

Value to rise

NHOA: + 4% for Medincell and Genfit

Maurel & Prom: Metabolic + 3.5%

Prodways: + 2.5% for Valneva, Coface, Bolloré, Nokia, ABC Arbitrage

Vallourec: + 1.5% at IPSOS, GrupeGorgé, Carrefour

TotalEnergies (+ 1.4%) has reached an agreement with Adani Enterprises Limited (AEL) to acquire a 25% stake in Adani New Industries Limited (ANIL). ANIL will be AEL and TotalEnergies’ exclusive platform for the production and commercialization of large-scale green hydrogen in India. As a first milestone, ANIL aims to produce 1 million tonnes of green hydrogen (Mtpa) annually by 2030, based on a new renewable energy production capacity of approximately 30 gigawatts (GW).

Financial stocks in Societe Generale, AXA and BNP Paribas surged slightly. These are one of the rare increases (about 1%) observed at CAC 40 on Tuesday.

Drop value

Atos increases losses and reduces them by 23%. The group has focused its big data and security (BDS) activities and announced the split into two listed entities, SpinCo (Evidian) and Tech Foundations (TFCo, Atos), managed by Philippe Oliva. Group IT services led by Nourdine Bihmane. This operation will “release value” as part of a broader program estimated to cost € 1.6 billion from 2022 to 2023. Due to a major difference from the board of directors of the strategy to be implemented, the confirmation of the next departure of General Manager Rodolph Belmer, who arrived at the top of the French digital services specialist at the beginning of the year, has not been created. Please rest assured. In particular, the appointment of Eutelsat’s former boss should be able to accurately respond to the loss of investor confidence due to accounting errors and failed attempts to acquire large groups. Atos, which weighed more than € 8 billion in the stock market at the end of 2020 and was still part of CAC 40, was worth only € 1.85 billion this morning.

Air France-KLM (-13%) has announced a successful capital increase with preferred subscription rights. Its start was announced on May 24, 2022. The total revenue of the capital increase is € 2,256 million (including € 1,611 million). (Subscribe in cash), including issuance premium, will support the issuance of 1,928 million new shares at a subscription price of € 1.17.

Avionics: -10% for parrots, avionics (-8%), turrets (-7%)

Worldline will fall 7% after Atos completes the sale of the remaining shares. In particular, Atos sold about 7 million shares, which is about 2.5% of Worldline’s capital, at a unit price of € 33.41, offering a 4.8% discount from the closing price of Worldline on Monday night. Net income from the disposal was approximately 220 million euros.

Inventiva: DBV, Nexans-6%

Corian: -5%, followed by Arkema

Soitec: -4.5% for Waga, M6, Eurazeo, Legrand, Neoen

Lexel: -3.5%, Delishbourg, Saint-Gobain, Casino, Basted

Michelin gives up 3%. JP Morgan is behind this selling pressure on tire makers as long as banks downgrade their shares to “underperform” while lowering their target from 140 euros to 110 euros. After the recent car conference, brokers have shared “enhanced views on clear signals” about production stabilization in Europe and North America and a “V-shaped recovery” in China.