The Cac 40 is on the way to open slightly down as the latest indicators from China fuel fears about growth, especially as inflation remains high in the United States. The market is awaiting several statistics concerning industrial production on both sides of the Atlantic, as well as the manufacturing activity index from the New York Fed. Around 8:30 am, the contract future September on Cac 40 yields 0.3%.
Asian markets were in the red this morning, with the Hong Kong Stock Exchange’s Hang Seng and China’s CSI 300 shedding 1.9% and 1.3% respectively as the close approached. Under the influence of the re-emergence of Covid-19 infections and tensions on the production chain, the Chinese economy is showing signs of slowing down reflected by the sharp slowdown in retail sales, up only 2.5% on one year in August, the weakest pace since 2020, while industrial production growth fell to 5.3% over one year, after 6.4% in July, against an expected increase of 5.8%.
The Fed more concerned about jobs than inflation
Economic considerations also weighed on Wall Street on Tuesday evening, with a sixth straight decline for the Dow Jones and the S&P 500. Fears of slower growth have also weighed on the bond market, the yield of the 10-year American loan having touched 1.263% during the session, its lowest since August 24. The market is focused on the Fed’s tapering schedule. If the slowdown in inflation to 4% over one year last month in the United States serves Jerome Powell’s discourse on the temporary nature of the price increase, other considerations must be taken into account. As Michael Hewson, Chief Market Analyst at CMC Markets recalls, “ the Federal Reserve has already indicated that it is focused on the labor market, and inflation is a rather peripheral problem among other short-term considerations ».
Vivendi will pay an interim dividend
Vivendi indicated that its management board decided to pay an interim dividend in kind ” paid according to the interim balance sheet at June 30, 2021 »As part of the listing of its musical subsidiary UMG on the Amsterdam Stock Exchange on September 21. This interim dividend will be associated with the exceptional dividend in kind in the amount of 5.3 billion euros already voted by the shareholders.
Capgemini announced that it had reached an agreement to acquire the American company VariQ, which specializes in services to American federal agencies. The financial side of the operation was not disclosed.
Carmat reported a net loss of € 26.4 million for the first half. The group did not generate any turnover over the period, but specifies that the first sales were recorded from the beginning of the third quarter and amount to around 2 million to date.
Among analysts’ ratings, HSBC has downgraded Sodexo from “purchase” to “keep” is reduced its price target from 95 to 80 euros.