(CercleFinance.com) – The Paris Stock Exchange (+0.52%) slowed the pace a little at the close but continued its series of records with a CAC40 which jumped on contact with 7,520 and a CAC ‘GR’ beyond 22,100.
The CAC40 aligns 4 sessions of consecutive increases for a weekly gain of +1.7%, the index being driven by banking stocks this Friday (Société Générale +3.6%, BNP-Paribas +3.2%, Crédit Agricole +2.3%).
The Euro-Stoxx50 gained 0.5% (4,385 Pts) and returned to its annual peaks (4,400) and not far from its absolute record of January 5, 2022.
On Wall Street, the Dow Jones dropped by -0.6% and fell back below 34,000, weighed down by Boeing (-6%) which is experiencing a new concern for ‘quality’ on the 737-Max. The S&P500 fell 0.4% and the Nasdaq lost 0.6%.
Note this latest US figure: US consumer confidence improved more than expected in April according to the preliminary results of the University of Michigan’s monthly survey published on Friday.
The confidence index rose to 63.5 this month, after 62 in March, while analysts expected it around 62.7.
Joanne Hsu, the author of the report, attributes this recovery to the rise in the morale of low-income households, which more than offset the decline in that of the wealthiest households.
The component of consumers’ judgment of their current situation stood at 68.6, compared to 66.3 in March, while the sub-index measuring their expectations also improved, to 60.3 from 59.2. last month, despite a deterioration in inflation expectations on a one-year horizon, envisaged at 4.6% against 3.6% the previous month, consumers expect inflationary pressures to persist for another time.
U.S. retail sales fell more than economists expected in March, falling 1% sequentially after falling 0.2% the previous month (revised from an initial estimate of -0, 4%), according to the Department of Commerce.
Excluding the automotive sector (vehicles and equipment), US retail sales contracted 0.8% last month compared to February, where the market consensus expected a more limited decline.
US industrial production rose 0.4% last month after rising 0.2% in February, according to the Federal Reserve, a development roughly in line with economists’ expectations.
In detail, manufacturing production and that of extractive activities fell by 0.5%, while that of ‘utilities’ jumped by 8.4% on more usual weather conditions which stimulated demand for heating.
Production is 0.5% higher than its level of the previous year. The industrial capacity utilization rate improved by 0.2 point to 79.8%, a level 0.1 point above its long-term average (1972-2022).
Across the Atlantic, the yield of 10-year Treasuries rose by +6pts to 3.5110%.
Investors were able to take note this morning of the evolution of consumer prices in France. Over one year, they increased by 5.7% in March 2023, thus marking a slowdown after +6.3% in February, according to INSEE, which thus revised its provisional estimate for the March.
This drop in the inflation rate is due to the slowdown in energy prices (+4.9%). Those of manufactured goods (+4.8%) and services (+2.9%) increased at a rate close to February. The prices of food (+15.9%) and tobacco (+7.8%) accelerated.
Investors’ current attraction to equity markets is limiting demand for Treasury bonds, as illustrated by the rise in yields on German Bunds and French OATs (+4 to 5pts today, to 2.933% and 2.424% respectively). ).
The Dollar recovered after its annual low the previous day: +0.4% at 1.100E.
The prospect of an upcoming pause in the monetary tightening cycle, in the United States as in Europe, is fueling investors’ appetite for risk and directing them towards the equity markets.
Markets are now awaiting the start of the corporate earnings season, and possible good news that would support the upward trajectory that has been underway in recent weeks.
In the news of French companies, Hermès International unveils sales of 3.38 billion euros for the first quarter of 2023, up 22% (+23% at constant exchange rates), with activity ‘dynamic in all geographical areas and in all businesses’.
Kaufman & Broad publishes net income group share (RNPG) of 31.6 million euros for its first quarter of 2023, compared to 11.8 million over the same period in 2022, as well as a current operating income improved by 0.9 points to 8.4%.
Genfit publishes a net loss of 23.7 million euros and an operating loss of 27.3 million for 2022, compared to profits of respectively 67.3 and 31.8 million euros recorded the previous year. .
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