(CercleFinance.com) – The CAC40 gains a little more than 0.7% (to 8,190) and will – barring a highly improbable surprise – post a 5th consecutive session of increase for a cumulative gain of around 3.5% on the interval: the Paris Stock Exchange returns to 0.2% of its best historical close of March 28, 8,205 points (and if the CAC breaks a record this evening at 5:35 p.m., there are 20 minutes left!).
The market rises ‘in a vacuum’ (950MnsE exchanged in 7 hours), in the absence of any opposition: the market is literally deserted by operators on this Ascension Thursday, the few buyers therefore make the difference.
This session will certainly remain historic for the German stock market with a DAX (+1%) which smashes a new absolute record at 18,700 Points, despite the -6% plunge of Mercédès.
The Euro-Stoxx50 remains a little behind with +0.2%, reflecting the lack of enthusiasm on Wall Street, where for the 3rd time in 3 sessions, the 3 main US indices are moving within narrow margins with a Dow Jones at +0.4%, a positive Nasdaq of 0.2%, the S&P500 averaging with a score of +0.3% and which flirts with its absolute closing record, at 5,207Pts (same for the Nasdaq to which only a few points are missing, at 16,350).
While the last sessions were punctuated by the publication of numerous quarterly company results, JPMorgan reports that 78% of companies did better than expected in the United States while 56% exceeded expectations in Europe, a performance superior to the usual average.
‘Despite the good surprises which characterized the accounts of American companies, the reaction on the stock market remained gloomy, since the publications better than expected were greeted, on the whole, with zero scores, while the disappointments were punished more harshly than usual’, observes the New York bank.
The environment remains sluggish, awaiting the next catalyst.
It did not come from the United Kingdom this afternoon: the Bank of England left its key rate unchanged as expected but specified that it ‘should reduce its rates within a few months or a few quarters’ (which makes it possible to maintain for an additional 6 months).
The BoE anticipates 2.6% inflation – and no longer 2.8% – in the United Kingdom in 2024.
British Gilts do not benefit from this and see their yield increase by +5 points towards 4.19%.
The trend is not much more encouraging in the Eurozone with OATs at +4Pts towards 3.003%, Bunds at +4Pts towards 2.498%, Italian BTPs with +5Pts at 4.85%.
US T-Bonds remain calmer with +2Pts at 2.502%.
Apart from registrations for unemployment benefits in the United States, no major indicator was on today’s agenda.
The Department of Labor announces having recorded 231,000 new registrations for unemployment benefits in the United States during the week of April 29, a figure up 22,000 compared to the previous week, the level of which was revised marginally upwards, from 208,000 to 209,000.
The four-week moving average – more representative of the underlying trend – stood at 210,250, an anecdotal increase of 250 compared to the previous week.
Finally, the number of people regularly receiving compensation increased by 17,000 to stand at 1,785,000 during the week of April 22, the most recent period available for this statistic.
The Dollar is crumbling against the Euro which is gaining 0.2% towards 1.0770, the barrel of ‘Brent’ is recovering slightly, by +0.3% towards $84.05 in London.
In French company news, EDF announces that following the delivery of the authorization to commission the Flamanville EPR by the ASN, its teams have started loading the 241 fuel assemblies into the reactor vessel this May 8, loading which will last several days.
For its part, Renault announced this morning that Nissan’s contribution to its own results was estimated at 225 million euros for the first quarter of 2024. The Losange also gained nearly 1.8% this morning, i.e. the largest increase in the CAC.
Finally, Oddo BHF reiterates its ‘outperformance’ opinion and its price target of 24 euros on Alstom, the day after the publication of the annual results accompanied by the presentation of measures to strengthen the balance sheet, including a capital increase.
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