(News Bulletin 247) – The CAC 40 was down slightly at mid-session, with the index suffering profit taking after its recent increases.

The Paris Stock Exchange almost logically suffered a small correction on Monday. After taking 1.3% on Friday and 2.4% for the week as a whole, the CAC 40 is thus taking its breath away. The Parisian index thus yields 0.6% at mid-session, at 7343.68 points.

The good performance of equity markets can be seen despite the severe warnings issued by central bankers last week. The Federal Reserve (Fed) and the European Central Bank (ECB) have both warned that they have further rate hikes in sight.

“While the two main central banks, the Fed and the ECB, have instead shifted their rhetoric towards more tightening, or at least maintaining tight monetary policies for some time, equity markets remain relatively resilient. So today “Today, the market saying not to fight central banks seems to be under attack,” said Sebastian Paris Horvitz of LBPAM.

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“In part, this resilience in equities is due to the views of financial analysts who have started to revise upwards the outlook for earnings growth. This seems paradoxical, while restrictive monetary policies are aimed in particular at constraining demand”, continues -he.

The week is therefore likely to mark a phase of consolidation, while the publication of the flash PMI indices (first estimate) on Friday, and the hearings of Jerome Powell before the two chambers of the US Congress, Wednesday and Thursday, will be the highlights of the coming days. .

Vinci and Eiffage suffer

As for values, the construction and concessions groups Vinci (-3.6%) and Eiffage (-5%) are retreating while the Council of State has issued an opinion to the government in which it issues a green light to a potential surcharge on motorway companies, but subject to conditions.

Sartorius Stedim plunges 13.7% penalized by the market for issuing a resounding earnings warning.

Getlink takes 2.8% carried by Morgan Stanley which raised its advice to “overweight”, against “online weight” previously.

Note that on this opening day of the Paris Air Show, aeronautics is well oriented. Safran wins 1.6%, and can potentially benefit from the announcement of its comparable, MTU Aero, which takes 3.5% on the Frankfurt Stock Exchange. The German engine manufacturer raised its financial forecasts for the 2023 financial year at the start of the morning. Airbus for its part is slightly in the green (+0.55%). According to an agenda provided by the company, the group will make a “commercial announcement” at 3:30 p.m., which may lead to speculation of an order announcement. Press reports have mentioned important contracts that could be formalized by the company. Bloomberg reported that an order for 500 planes from the Indian low-cost airline IndiGo could be formalized as early as Monday.

On the other markets, the euro lost 0.2% against the dollar at 1.0917 dollars. Oil contracts are falling. The August North Sea Brent contract fell 0.2% to $76.45 a barrel, while the July New York-listed WTI contract fell 0.4% to $71.51 a barrel.