(BFM Bourse) – Volatility has reigned supreme on the stock markets since the start of the war in Ukraine. After Monday’s rebound, the CAC 40 plunged again on Tuesday.
Volatility. This is certainly the only constant element since the start of the war in Ukraine with the invasion of the country by the Russian army. Thus, the day after an advance of 1.75%, the CAC 40 index lost 0.23% on Tuesday at the close, standing at 6,355 points. Trading volumes were lower than in recent days, at 4.7 billion euros, a sign of the wait-and-see attitude of investors who are having a hard time identifying a trend.
The session itself was also very changeable, the CAC 40 losing up to 2.6% in the morning, before gradually climbing the slope and (very) briefly returning to the green shortly before 5 p.m. But again, the news from Ukraine caused concern. If Ukrainian President Volodymyr Zelensky indicated on Tuesday that it “must be recognized” that Ukraine will not be able to join NATO, Russia is initiating the procedure for “exiting the Council of Europe”.
In Asia this morning, the correction had also been severe for the CSI, the flagship index of the Shanghai Stock Exchange, which faltered by -4.95% due to the epidemic outbreak which is leading the authorities to reimpose strict confinements. After Shenzen, Jilin province and parts of Shanghai are now affected, which only adds to concerns about global supply chains.
As Russian artillery continues to ravage major Ukrainian cities, regardless of civilian casualties, negotiations between Ukraine and Russia still seem to have stalled. Another point of tension on the planet, the American forces stationed in South Korea are increasing the intensity of the exercises of their anti-missile defense system, in fear of a new long-range missile test from North Korea.
On the side of Wall Street, after a decline on Monday, the main indices started to rise again on Tuesday around 5:30 p.m.: +1.72% for the S&P 500 and +2.2% for the Nasdaq Composite. It is in this delicate context and always so complicated to read that the meeting of the monetary policy committee of the Federal Reserve opens, which should announce Wednesday evening a first rate hike.
Cyclical stocks penalized
In Paris, where news about companies is rare, operators logically distance themselves from cyclical segments of the market such as ArcelorMittal (-1.69%) or Alstom (-3.55%), which had rebounded well these two last days. Luxury (-1.31% for Kering, -3.13% for Hermès and -1.45% for LVMH) or aeronautics (Safran -2.05%, Airbus -1.38%) are also penalized.
However, some cyclical stocks are doing better, such as Renault (+2.27%) and Michelin (+1.77%). Thales also progresses (+1.64%), like other military stocks when the tension rises.
The price of oil continues to fall as operators now massively reduce their bullish bets, after reaping significant capital gains at their peak since 2008 reached on March 7 when the United States evoked advanced discussions to ban exports of Russian crude via Europe (prices had however started to fall the same day after Germany’s denial). This Tuesday around 5:30 p.m., the WTI futures contract fell another 5% to 96.93 dollars while Brent lost 4.6% to 101.10 dollars (i.e. -22% over one week). At the same time, the production of the main shale oil basins in the United States appears to be clearly re-accelerating, according to the EIA.
Only a solid fundamental topicality allows rare stocks to stand out in a very specific context. Thus the semiconductor industry equipment manufacturer Riber, winner of the France plan on Monday, is relaunching and unveiling a new order on Tuesday (the sixth since the start of the year, which is considerable on the scale of this firm worth d’oisienne de haute technologies) rose by 14.06%. In addition, the momentum given to Navya on Thursday by the signing of a memorandum of understanding with the Saudi Arabian Ministry of Transport is undeniable, the action of the Lyon specialist in autonomous shuttles still taking 5.61%.
Sanofi (+1.1%) is also joining forces with the American investment fund Blackstone to accelerate the development of its latest anti-cancer treatment, Sarclisa.
The euro regained some ground on its side at 1.0957 dollars around 5:30 p.m. (+0.15%), while bitcoin remained confined below 40,000 dollars to 39,200 dollars.
JLD – ©2022 BFM Bourse