Negative trend this Tuesday on the Paris Stock Exchange, weakened largely by the collapse of one of its industrial flagships. Airbus shares fell 10.9%, to their lowest level since November. Facing problems in its supply chains, the European giant expects to deliver around 30 fewer commercial planes this year, halving its growth forecast, and has announced a charge in its space business of around 900 million euros. As a result, the group is banking on an adjusted operating result of “ around 5.5 billion » euros, and no longer 6.5 to 7 billion euros.
Several brokers lowered their price target but only Deutsche Bank revised its opinion from “buy” to “hold”. Its analysts have sharply reduced their estimates for Ebit (operating profit) and free cash flow, from 13 to 20% for 2024-2026. “ The situation is reminiscent of 2022, but is further aggravated by space systems. The dust has to settle before we can become positive again. June deliveries are apparently sluggish and there is no guarantee at this stage that the new delivery target will be easy to achieve by the end of the year », They write in a note.
In the wake of Airbus, the aeronautical equipment manufacturer Safran lost 4.3%, Boeing and Spirit Aero fell back on Wall Street. The Cac 40 lost 0.68% to 7,654.7 points at mid-session, in a trading volume of 1.04 billion euros, a quarter of which concerns the European aircraft manufacturer.
Merck stops costs on its cancer drug trials
At the top of the index, we find Eurofins Scientific (+4.5%), which denied the allegations of financial embezzlement made against it the day before by the hedge fund Muddy Waters and which caused it to lose more than 16% in Sotck exchange.
In New York, the star of the markets and artificial intelligence Nvidia should rebound after having fallen over the last three sessions, pushing it into the correction zone, in other words a decline of more than 10% since its last high. “ This is not a macroeconomic story, it is purely a sentiment story regarding the huge AI-related outperformance seen since the start of the year, argues Danske Bank. It is difficult to determine whether this marks the start of a lasting trend, given that the fundamentals remain unchanged from last week. » Futures on the Nasdaq and the S&P 500 are up a few fractions and those on the Dow Jones are stable.
The macroeconomic agenda remains bare even today. Two small American statistics will feature in the afternoon, the consumer confidence index for June by the Conference Board organization and an index on real estate prices. The American parcel delivery giant FedEx will publish its quarterly accounts after the close.
Second largest drop in the European Stoxx 600 after Airbus, the German pharmaceutical laboratory Merck plunged 8.9% due to the termination of two phase III clinical studies on xevinapant for the treatment of head and neck cancer, given the low probability that they will achieve their objectives. The product should have reached peak sales of 1.4 billion euros, according to Jefferies analyst Brian Balchin, for whom Merck will likely have to book an impairment charge of 60 million euros this quarter.
