Cac 40 falls below 6400 on corporate margin doubts, market news

If the bright sun still shines over the capital, Bourse, having risen by 1.3% on Tuesday, after passing several clouds fell by 1.2% to 6,352.94 points. Consolidation took place at a transaction volume of 3.4 billion euros. Published in the morning, two indicators related to inflation, the “hot” topic of the moment, did not affect the trend. Both of them confirm the rapid price movement.

In the UK, the consumer price index jumped 9% year-on-year in April to a 40-year high, largely due to rising energy prices. At the end of March, the inflation rate was 7%, specifies the National Bureau of Statistics (ONS). In the Eurozone, inflation was revised up to 7.4% in April, but that’s the thickness of the line since the original estimate was 7.5%. Here again we are talking about energy prices, but the brunt of inflation falls on services, food, tobacco and manufactured goods. The market is now wondering about the impact of inflation and the general increase in costs (wages, freight, fuel) on the company’s margins.

U.S. distributor Target’s profits halved in the first quarter. In the stock market, the major indices are also raising the alarm, Dow Jonesbenchmark index of managers, which fell by 2.3%, and NASDAQ Composite, centered on technology stocks that fell 2.9%. Microsoft, Apple, Alphabet, Meta Platforms, Tesla, and Amazon lost between 2.3% and 5%, with 10-year Treasury yield growth approaching 3%.

CMA CGM at Air France-KLM Gateway

In an interview on wall street magazineThe head of the US Federal Reserve System (FRS), Jerome Powell, repeated that the market already knows, namely that the institution will continue to tighten its monetary policy to counter inflation, which slowed only slightly in April to 8.3% yoy. It will support any necessary rate hikes until the targets start to be met.” there will be no doubt about it “, he scored. In addition to inflation, the health situation in China continues to cause concern. Cases of Covid-19 infections have increased in Beijing, according to Bloomberg news agency, which could lead to the introduction of additional restrictive measures.

On the value front Air France-KLM was one of the fastest growing in SRD thanks to a gain of 4.87%. The airline announced long-term partnership in the field of freight transportation with the operator of sea container ships CMA CGM, which can take up to 9% of the capital of the company in case of fundraising. Also a well oriented stock market operator euronext added 3.85% after posting a sales record on 31 March at €395.7m. Net profit, which increased by 50.3%, rose to 164.4 million after the integration of Borsa Italiana.

Scandal in New Orpey?

Vice versa, Orpea is in trouble again. The title of the manager of nursing homes collapsed by 19.17% after he was removed from the auction. This is an investigation by Mediapart and a team of journalists from Investigate Europe. They point out that the Luxembourg holding company Lipany, created in 2007, on which Orpea relied, has “ conducted several questionable financial transactions and recovered, through its forty subsidiaries, assets worth 92 million euros in four European countries, including France. “.

By his side Elior ended with a slight drop of 0.98% after falling 10% at the open. If catering group activity recovers in the first half of fiscal year 2021-22inflation pressure affects operating marginsalready degraded due to the Covid-19 pandemic. Customer loyalty is not growing, there will be no dividends for this fiscal year, and the new targets are disappointing.