(BFM Bourse) – Despite the absence of macroeconomic news and diplomatic progress concerning the situation in Ukraine, the CAC 40 recovered 1.34% on Friday, thus ending a sequence of three consecutive declines against a backdrop of new turn of the Fed.
At the end of one of a series of three sessions in the red, the CAC 40 index recorded an essentially technical rebound on Friday, winning 1.34% at 6,548.22 points at the close, in a trading volume down from the last sessions, by around 3.6 billion euros. The barometer of the Parisian market does not however escape a largely negative weekly score, since it shows a decline of 2.04% over the week. It nevertheless preserves the threshold of 6,500 points below which it had fallen for the first time in three weeks.
Share prices have indeed suffered since Tuesday from investor concerns about the policy of the Federal Reserve of the United States. The famous “minutes”, or the minutes of the last meeting of the institution, have in fact revealed the determination of the governors to fight against inflation. Even if it means raising rates and reducing the size of the Fed’s balance sheet more quickly than expected by the markets, despite the rising risks to growth, including that of the world’s largest economy…
The continuation of the war in Ukraine has also fueled caution, as the massacres of civilians lead to new sanctions against Russia.
In the aftermath of a modest rebound, Wall Street started the last session of the week in the red, rocking the star index of the tricolor rating which only recorded an increase of 0.5% shortly after the opening of trade in New York. Also on their way to a weekly decline, the Dow Jones and the S&P are however moving in the green around 6 p.m. (+0.7% for the first, +0.2% for the second), while the Nasdaq remains in negative territory while the continued rise in sovereign yields penalizes growth stocks.
Business news is proving to be as hollow as the agenda of the day’s macro-economic publications is bare. In this context, analysts’ ratings have met with a certain echo, such as the raising of RBC’s opinion of Sodexo, which has enabled the restaurateur to regain 5.5%. The design office believes that the undervaluation of the action becomes too irrational, evaluating for its part the fair value at 83 euros.
Alstom, for its part, benefits from a Citi rating and climbs 5.4%. Edenred is content with a gain of 2.4% (but this is the sixth session of rebound) after raising the target of Stifel, an American broker, to 54 euros.
The sale by Stellantis of the balance of its stake in Gefco to CMA CGM, offers a slight rebound of 1.7% for the manufacturer, even if no quantified element on the transaction has been revealed.
After coming close to its historic record on Thursday thanks to a 5th consecutive increase, the pharmaceutical giant Sanofi is accelerating further with a 4.6% lead this Friday, bringing its gains to nearly 18% since January 1 and the title to a new high, at over $130 billion in market valuation.
Declining oil production in Russia
Among the latest annual publications, that of the 2021 results of Precia Molen is appreciated while the Ardèche group will increase the amount of the dividend by nearly 50%. The action took off by 5.6%. Akwel, on the other hand, lost 1.2% as the equipment manufacturer achieved its objectives for the past year, limiting the drop in its results compared to 2020.
On the other hand, Genfit returns 1.3% after presenting a profit result for the past year and AdUx is down 5.8%: the group has also returned to profits in 2021 but economic uncertainty prompts it to be cautious. for 2022.
In a market that is worried about the lack of a real alternative to the withdrawal of Russian crude from the world market, while Russian production experienced its steepest decline in almost two years in the first week of April, the contract ” future” on the barrel of Brent, which fell to a three-week low on Thursday, resumed 0.5% to 101 dollars, while WTI gained 0.6% to 96.6 dollars.
On the currency side, the euro declined further by 0.06% to 1.0866 dollars, while the increased uncertainty about the presidential election in France seems to be carried over to the European currency, which may “explain the insensitivity from the latter to the rise in European yields”, notes Guillaume Dejean at Western Union Business Solutions.
Quentin Soubranne – ©2022 BFM Bourse