The good performance of the S&P 500 and the Nasdaq Composite, which interrupted a series of three straight sessions of decline on Wednesday evening, should encourage the Paris Bourse to continue its rebound from the day before. The trend nevertheless remains dependent on inflationary pressures, especially as the US Federal Reserve could embark on the path of reducing the amount of its asset purchases next month.
Asian markets were upbeat this morning, with the Japanese Nikkei 225 and the South Korean Kospi advancing by more than 1%. Conversely, the Chinese CSI 300 lost 0.4% as the close approached after the announcement of a 10.7% year-on-year jump in producer prices in September, the largest since the creation of statistics 26 years ago. Hong Kong was closed on Thursday due to public holiday.
Tapering started before the end of the year
In the United States, consumer prices rose 5.4% year on year last month, slightly above expectations, without creating tensions in the interest rate markets, the yield of the American bond oscillating below 1.6%. In the “minutes” of the last meeting of its monetary policy committee, the Fed indicates that its officials consider that ” the economic recovery has remained broadly in the right direction, the process of a gradual reduction in its asset purchases, which would be completed by the middle of next year, would probably be appropriate “. Clearly, a decision could be announced in mid-November or mid-December. For analysts at Capital Economics, the minutes read ” clearlyt ”that the“ tapering ”will be announced at the November meeting.
Publicis raises its annual objectives
After yesterday’s JPMorgan quarterly, where record M&A revenues were offset by weak credit grant growth, the market is bracing for another salvo. Morgan Stanley, Citigroup, Bank of America and Wells Fargo will be on the bridge this Thursday, as will drugstore chain Walgreens Boots Aliance and insurer UnitedHealth Group, both components of the Dow Jones.
The economy will also take center stage with September producer prices and weekly jobless claims in the United States, not to mention inventories of petroleum products.
Publicis raised all of its financial objectives for 2021, encouraged by the sustained and better than expected growth of its activities in all of its geographic areas in the third quarter. For the full year, the advertising agency now forecasts growth of between 8.5% and 9% in its net income at constant scope and exchange rates.
Technip Energies announced that it had won a contract with the Indian conglomerate NTPC for its project to produce hydrogen by electrolysis in the state of Madhya Pradesh, in the center of the country.
Among analysts’ notes, Jefferies began monitoringLiquid air and D’Arkema to “purchase” to target 162 euros, for the first, and 130 for the second. Societe Generale has downgraded CGG from “buy” to “keep” and reduced its price target from 1.14 to 0.80 euros. HSBC has raised its target price on EDF from 14.30 to 15.10 euros while maintaining his opinion of “buy”.