2023-08-25 10:00:00
THE TREND
In still sparse news, the CAC40 gradually resumed its upward path on Friday. Stable at the start of the session, it now gains 0.5% around 7,250 points and erases its decline from the previous day. Few significant variations are however observed among the values of the Parisian index.
A few hours before Jerome Powell’s speech (at 4:05 p.m.) at the Jackson Hole symposium, investors lack initiative. Traders will be looking for any indication of the future path of Fed rates as the world’s largest economy shows surprising signs of resilience despite the aggressive monetary tightening undertaken by the Federal Reserve in recent months (Fed Funds rates are the highest for 22 years). Christine Lagarde will also speak at 9 p.m.
“There’s no real reason for Powell to take a dovish tone, and that might mean a tough weekend for stocks and a jump for the dollar,” said Matt Simpson, market analyst at City Index. Ahead of J. Powell’s speech, Fed Bank of Boston President Susan Collins told ‘Yahoo! Finance’ that rate increases may still be needed, adding that it was not ready to signal the high point. Meanwhile, his Philadelphia counterpart, Patrick Harker, expects interest rates to remain unchanged for the rest of the year and thinks policymakers have likely undertaken enough tightening, telling ‘CNBC’: “We we’ve probably done enough.”
RISING VALUES
* JCDecaux wins more than 4% at 17 euros. The title is boosted by a note from Deutsche Bank which raised its recommendation on the ‘purchase’ on the file by targeting 21 euros. After the stock’s sharp underperformance since March, the bank sees a great opportunity to position itself on a high-quality name in the media at a time when cyclical concerns are pressing. The group has exposure to China, but the broker believes risks are now priced in and investors shouldn’t let short-term macro concerns overshadow the bullish structural outlook. Next year’s Paris Olympics might drive revenue growth and JCD’s out-of-home exposure offers attractive long-term growth, supported by the digital shift, programmatic buying and sustainability trends . The broker sees consolidation as a positive: the group’s strong balance sheet means it is well placed to capitalize on mergers and acquisitions.
* Societe Generale points up timidly up 0.2% to 26 euros. The title of the bank of Defense aligns despite everything a fifth session of progression. Berenberg revalued the file from 25.5 to 30 euros while remaining to ‘keep’. The analyst explains that the stock has outperformed the banking sector by 11% over the past month (but is underperforming by 15% since the start of 2022), amid growing optimism regarding the next investor day (September 18 ).
* MG International gains more than 10% to 6.85 euros but in very low transaction volumes. The dividend of 0.34 euro will be detached from the share on September 21, 2023 and will be paid on September 25.
* Nanobiotix jumps 9% to 10 euros. The leading company in nanomedicine benefits from a nice boost insofar as Jefferies has taken over the follow-up of the file with a ‘purchase’ opinion and a target of 13 euros. The broker highlights the firm’s partnership with Johnson & Johnson’s Janssen for the experimental cancer therapy NBTXR3. “We are excited regarding the broad potential of NBTXR3 in treating solid cancers,” the broker says, adding that the partnership “provides strong external validation” and “great pharmaceutical strength” for the treatment.
* TotalEnergies advances by 1% to 57.8 euros with the rebound in crude oil prices.
FALLING VALUES
* No significant falls on the CAC40: Unibail-Rodamco-Westfield brings up the rear with a limited decline of 0.4%.
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