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CAC 40: Up 7% in July, CAC achieves its best month since November 2020

(BFM Bourse) – After a tumultuous month in June, the great days of the inventory market are again. With a acquire of over 1.7% on Friday night, the CAC 40 ended the inventory market month up 7% at 6,400 factors. Paris markets are buoyed by hopes of a extra accommodative Fed on its future financial coverage and better-than-expected company outcomes.

For the final session of July, the Paris inventory trade didn’t take half motion and closed sharply greater by 6,400 factors at 6,448.50 factors, the best since June 8. The day’s sharp rebound introduced the weekly acquire of the Parisian star index to 4.07%, including to the three% already gained in the earlier week.

At this time, the day’s rebound in Paris was praised for the outcomes of worldwide acclaimed firms corresponding to Air France-KLM, which returned to revenue for the primary time since 2019, or Renault, whose good margin orientation regardless of its setbacks. Russia Luxury shines once more this Friday with Hermes and L’Oréal.

After all, the Paris Stock Exchange ended this historically wealthy month in monetary markets with a hearty acquire of seven.27%, ending a streak of 5 out of seven month-to-month declines since the start of the 12 months – noting that optimistic change was restricted to March… 1 level or +0.02 %. This is the CAC 40’s best month-to-month efficiency since November 2020 (+20.12%). All in all, this stunning month allowed the Paris Stock Exchange to comprise its annual losses since January under 10% after -18% on the finish of final June.

Assured development in euro zone in Q2

Earlier in the morning, buyers discovered reassuring information on the well being of Europe’s economic system. Economic development in the euro zone in the second quarter was stronger than anticipated at 0.7% in comparison with the earlier quarter. The solely draw back is inflation, which was nonetheless excessive at 8.9% over the 12 months in July after 8.6% in June.

In New York, the temper can be good, the American place can be going to realize the best month of the 12 months, pushed by the great reception reserved for the outcomes of the tech giants. At the shut of European inventory markets, Amazon and Apple gained 11% and a couple of.45% respectively on Wall Street. These performances got here again in opposition to the backdrop of a recent acceleration in inflation in June. Consumer costs rose 6.8% year-on-year and 1.0% from May, in line with the PCE index, one of many inflation gauges used to find out the Fed’s financial coverage.

On the enterprise entrance in Paris, a brand new batch of periodical publications was on this system for this Friday earlier than the summer time break, even when some heavyweights of scores corresponding to Bouygues, Veolia, Axa or Société Générale will report in the primary week of August.

Hermes is the star of the day

At the highest of the CAC 40 (for worth development), Capgemini took the crown from Hermes and rose 8.6% this Friday. The IT companies large raised its development goal for 2022 after robust half-year outcomes.

Hermes International moved into second place and rose 7.5% the day after a glowing half-year publication. Sadler posted a present working margin of over 40% through the interval and a web half-year outcome additionally grew sharply by 39.7% year-on-year. L’Oreal grew by 2.45%, with the cosmetics large considerably rising its gross sales in China in the second quarter.

Renault rose 5.10% after elevating its annual working margin and free money move targets. The group introduced greater margins in the primary half, with the Diamond model shifting upmarket.

On the opposite facet of the chart, Vivendi fell 8% after releasing its half-year outcomes. According to a press launch, the group is learning the sale of Adits to keep away from issues related to a merger with Hachette proprietor Lagarde’s group.

EssilorLuxottica restricted its losses to 1.9% because of a slowdown in its operations in the second quarter, which didn’t stop the optical large from posting a rise in working margins for the present 12 months in the primary half of the 12 months.

Air France takes off

Excluding the flagship index, Air France-KLM recovered 4.4% after recording a optimistic web outcome in the second quarter in opposition to the backdrop of a restoration in its post-pandemic exercise.

Shares of X-Fab fell 14.3%, because the provider to the semiconductor trade revised its development forecast for 2022.

In the overseas trade market, the euro was regular at $1.0219. On the oil facet, costs instantly surged forward of a gathering of the Organization of the Petroleum Exporting Countries and their allies. WTI jumped 4% to $101.29 whereas a barrel of Brent from the North Sea rose 2.20% to $110.18.

Sabrina Sadgui – ©2022 BFM Bourse

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