Cac 40: The day after a fall of almost 4%, the CAC signs a meager rebound


(BFM Bourse) – The rebound shown by the Paris market barometer on Tuesday (+0.74%) appears marginal in view of the heavy losses (-3.97%) the day before. Investors indeed remain wary, watching the geopolitical tensions in Ukraine with one eye and the start of the Fed meeting with the other.

Still feverish – able to drop more than 1% twice in less than half an hour, in the early morning then at the opening of Wall Street – the CAC 40 closed Tuesday up 0.74% in closed at 6,837.96 points, in a still dense trading volume of nearly 4.5 billion euros.

Make no mistake about it: if the three-color flagship index shows a positive variation, it is essentially under the effect of a catch-up at the margin compared to the spectacular rise on Wall Street after the close of trading. European markets the day before. But, like Monday, a certain caution and an increase in volatility still reigned on the Parisian market, as evidenced by the sudden “intraday” variations of the star index as well as many values.

Measured by the Vix, known as the “fear” index, volatility is currently at a level not seen in a year in the face of fears that are accumulating in the minds of investors. While the latter were already worried about the pace at which the Fed will raise its key rates and reduce its balance sheet in order to counter inflation, the first salvo of quarterly publications did not really give the observed boost. to previous quarters, and to this are added geopolitical tensions, particularly between Ukraine and Russia (but also between the United Arab Emirates and the Yemeni rebels). Together, these elements have clearly weighed down the mood of operators since last Friday.

Wall Street goes down again

In the aftermath of their spectacular rally, the New York indices fell again on Tuesday, the solid results of companies like IBM and American Express being eclipsed by the start of the first day of the Fed’s monetary policy meeting, at the outcome of which investors are notably awaiting clarification from the central bank on the timetable for raising its rates. After recovering more than 5% in “intraday” on Monday to end the session in extremis in the green (+0.6%), the Nasdaq Composite again yielded 2.7% at 5:50 p.m. The DJIA and the S&P fell 1.1% and 1.9% respectively at the same time.

In Paris, Renault (+3.2%) posted one of the strongest increases in the CAC 40, the title leaving clearly in the green on Monday morning having also ended up carried away by panic sales, despite the raising of the council of Exane and electrical projects. URW (+3.4%) and Safran (+1.8%) also rebounded strongly, while BNP Paribas gained 3.3% after raising Jefferies’ target (from 72 to 79 euros) . On the other hand, Teleperformance chained a 3rd consecutive session of decline (-1.7%), Eurofins (-1.2%) a 4th and Stellantis (-1%) a 6th!

Interparfums always above its targets

Among the microeconomic announcements of the day, it took all the firepower of Interparfums to boost the stock by 7.5%. The group reported annual revenues for the first time above half a billion euros, slightly above the target yet raised three times, along with a better than expected operating margin. Accused of mistreatment in its Ehpad, the sector leader Orpea fell heavily for its resumption of listing (-20.3%), after a plunge of more than 16% on Monday, and takes Korian with it (-4.6%) . Ubisoft for its part returned 4.6%, and its strong rebound undertaken last week at the announcement of the takeover of Activision by Microsoft continues to wither.

Oil prices recovered, the European benchmark Brent taking 1.7% to 87.8 dollars around 6 p.m., which benefited Vallourec (+8.2%), TechnipFMC (+6.2%) and Schlumberger (+5, 9%).

Lumibird soared 3.2% on the news of double-digit sales growth last year, thanks in part to a new record in the last three months of 2021 when billings reached almost 50 million. euros for the first time in the history of the group (resulting from the Quantel-Keopsys merger). Digital TV service provider Netgem for its part fell 5.4% after announcing an 11% growth in its annual gross margin, slightly below its forecasts.

On the other hand, a turnover there also rather better than expected for Rémy Cointreau at the end of 2021 did not save the day for the shareholders of the spirits group. Indeed the share price lost 2.1%, the group having warned that the “very strong organic growth” in current operating income expected for the 2021-2022 financial year would be “only driven by the exceptional growth of the first half” – in other words on this aspect, the performance will not be there in the second half of the year.

On the foreign exchange market, the euro continued to depreciate, losing 0.39% to 1.1281 dollars in anticipation of confirmation by the United States central bank of an acceleration of the monetary normalization process with focus on a likely first rate hike in March.

Quentin Soubranne – ©2022 BFM Bourse



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