The prospect of a lower rate hike by the US Federal Reserve boosted US markets, particularly the Nasdaq Composite (+4%), dragging Asian markets with them. European markets should follow without departing from some caution. Meta Platforms, Facebook’s parent company, did disappoint when it announced the first quarterly revenue decline in its history. The contracts future US indices are also losing ground this morning. Apple and Amazon will present their earnings reports on Wall Street after the market close.
As expected, the Fed raised its key interest rate by 75 basis points for the second straight month, bringing it within a range of 2.25% to 2.5%. Its President, Jerome Powell, during his press conference, showed a determination to fight inflation while attempting to calm expectations of the next monetary tightening. In particular, he pointed out that ” At some point it would be appropriate to slow down “.
The mega rate hikes behind us?
Michael Pearce, senior economist at Capital Markets, notes that with “ We suspect slower inflation and more signs of economic weakness among those responsible [de la Fed] will be more cautious about the next rate hikes and return to more limited tightening of 50 basis points in September “.
Ditto for analysts at JPMorgan, who believe central banks should continue their monetary tightening cycle this year, but it seems “ increasingly likely that the peak of the rate hike pace is behind us “.
Jerome Powell also signaled that the next decisions will be taken session by session and hinted that a less hawkish approach will depend on economic indicators. In the bond market, the US 10-year bond yield stabilized at 2.78%, while in the FX market, the dollar weakened against other currencies, notably the yen. The euro is hovering around $1.02 after rising 0.9% overnight.
Investors’ attention now turns to the first estimate of US GDP for the second quarter. The consensus formed by Bloomberg expects growth of 0.5% on an annualized basis, after a 1.6% decline in the first year. In addition, the first data on the development of consumer prices in July in Germany will follow at the beginning of the afternoon.
Total Energies announced a new share buyback program after posting a jump in earnings in the second quarter of 2022, fueled again by the sharp rise in hydrocarbon prices amid the war in Ukraine.
Sanofi raised its full-year business profit guidance as its star drug Dupixent continued strong sales growth.
saffron increased its cash and revenue generation targets for 2022 after its first-half results soared on the back of a rebound in air travel.
Schneider Electric raised its operating profit and revenue growth targets for 2022 after reporting robust first-half results.
liquid air confirmed its outlook for 2022 after its first-half results improved, helped in particular by the rise in energy prices.
Stellantis announced new record results, the margins achieved with its Jeep, Fiat and Peugeot electric vehicles have allowed it to perform well in a context. particularly difficult “.
orange confirmed that it is targeting an adjusted adjusted gross operating surplus (Ebitdaal) of 2.5% to 3% on a like-for-like basis for 2022, while this indicator rose modestly in the first half of the year.
STMicroelectronics released better-than-expected second-quarter results and raised its full-year 2022 guidance given strong demand for its products.
airbus reduced its aircraft delivery target for 2022 and pushed back its production rate target of 65 aircraft per month for the A320 Family to early 2024 due to difficulties in its supply chain. Airbus now expects to deliver around 700 aircraft this year and not 720. The other goals will be adhered to.
teleperformance posted sales of almost EUR 2 billion in the second quarter, up 4.5% on a comparable basis. Adjusted for the sharp decline in the contribution from Covid relief contracts, organic growth reached 14.5%, accelerating compared to the first quarter (+11.1%). The annual forecasts are confirmed.
In the house of KeringSales rose 12% on a like-for-like basis between April and June, but growth for flagship brand Gucci was just 4% due to lockdowns and restrictions in China.
Crossing is upbeat for the second half after ongoing operating income rose 1.6% in the first six months of the year and the cost-cutting target for 2022 was raised amid accelerating inflation. Performance in Brazil, the distributor’s second market, provided strong support.
Holy Gobain reported record operating profit and a double-digit margin at the end of June. At 11%, it rose by 0.3 points within a year. The building materials manufacturer also reiterated its full-year outlook, which is an increase in operating profit at comparable exchange rates compared to 2021.
casino announced that it has reached agreement to sell a majority stake in its subsidiary GreenYellow to private equity firm Ardian for an enterprise value of €1.4 billion.
Elis announced several of its financial targets for fiscal 2022 related to “ Activity recovery, better than expected in the first half, as well [de] good price dynamics ‘ the company announced on Wednesday.