The Paris Stock Exchange is unable to get out of the bad situation in which it finds itself. Over the last two sessions, the Cac 40 lost 1.3% and almost 5% over the whole month of June, largely due to concerns linked to the legislative elections in France. Shortly after 10 a.m. this Thursday, the flagship index lost a little more ground, around 0.1%, to 7,600.3 points. And Wall Street should not be of any support, with a decline in its three main indices expected.
In post-market trading, Micron Technology’s stock fell 8%, as although the chipmaker’s guidance met expectations for the current quarter, it did not exceed them either. In light of Nvidia’s ever more impressive publications, analysts are becoming more and more greedy. “ The market has totally unrealistic expectations, many titles which largely defy expectations are sold, commented Andrew Jackson, Head of Strategy at Ortus Advisors. But I think the market is well aware of these excesses. There are too many speculators chasing quick and easy money ».
This Thursday, the third and final estimate of US GDP in the first quarter, jobless claims and a barometer of European consumer confidence will be the center of attention, before, in the evening, Nike’s results and the first debate between the two main candidates for the American presidential election, Joe Biden and Donald Trump. The Bank of Sweden has, unsurprisingly, maintained its key rate at 3.75% but it intends to resume its monetary easing thereafter, with two or three relaxations planned in the second half of the year, given the favorable development inflation and somewhat weaker economic activity.
Kering raised two notches by BofA, gloomy publication for H&M
On the corporate side, analyst recommendations set the pace. Kering climbed 5.7%, benefiting from a BofA upgrade from “underperform” to “neutral” based on signs of improvement for its Italian brand Gucci. Citi raised its opinion on Safran (+1.3%) from “neutral” to “buy”. JPMorgan and Deutsche Bank revised their advice on Unibail-Rodamco-Westfield upwards, the former moving to “neutral” and the latter to buy, which allowed the group to gain 0.5%.
The German bank, on the other hand, is less favorable on the real estate companies Klépierre (-1.2%) and Gecina (-1.8%), with analysts downgrading them both from “buy” to “hold”. Finally, Stellantis and Dassault Systèmes also suffer from poor ratings. The car manufacturer lost 2.4% and the software publisher almost 1%.
Cloud computing service provider OVHcloud reported quarterly revenue higher than expected, enabling it to jump 15.5%.
In Stockholm, clothing giant H&M fell 14% after reporting a lower-than-expected increase in operating profit for the March-May period. It even anticipated a 6% drop in sales in June due to poor weather conditions.
