(CercleFinance.com) – The Paris Stock Exchange definitely does not want to give in and is once again reversing steam, going from a decline of around 0.5% around 7,200 points, to an increase of +0.5% towards 7,272 while Wall Street did not have a hot start to the session, with mixed scores since the Dow Jones gained 0.2% while the S&P500 lost -0.4% and the Nasdaq -0.8%.
Once again, the strengthening of European markets is difficult to justify in a trivial way given the news of the day: there are only negative factors, whether on the side of ‘stats’, rates, results companies.
And this burst cannot even be put to the credit of the Euro (which was the case the day before) which relapsed by -0.5% this Thursday towards $1.0600.
The first estimate of inflation in the euro zone for the month of February cannot be a positive point: the consumer price index fell symbolically to 8.5% over one year, after 8.6% in January, according to Eurostat, but the fall is less steep than expected (in question, the 15% surge in food prices).
The consensus was counting on an inflation rate falling towards 8.2% to 8.3% (the process of disinflation since the peak at 10.6% in October is therefore slowing down).
‘Given the more sustained than expected resilience in economic activity and the labor market, the scenario of ‘persistent’ core inflation may well remain a major concern for the ECB and markets are beginning to price in new rate hikes’, warns Danske Bank.
The European Central Bank must also publish during the day the ‘minutes’ of its meeting of February 2, which resulted in a 50 basis point increase in its main interest rates.
The Frankfurt institution then confirmed that it was planning a further rate hike of 50 basis points for the month of March, citing in particular the persistence of the rise in food prices and the effect of wage increases.
‘This shows how much the ‘hawks’ have the situation well in hand’, summarize the teams of Oddo BHF.
Non-farm productivity grew by only 1.7% in the United States in the fourth quarter of 2022 at an annualized rate, according to a second estimate from the Department of Labor which announced a rate of 3% in first reading a year ago. month.
This downward revision, stronger than what economists had anticipated, is explained both by a drop in production growth, to 3.1%, and an increase in the increase in the number of hours worked. , at 1.4%.
Taking into account a 4.9% increase in hourly wages (instead of 4.1% in the preliminary estimate), unit labor costs increased by 3.2% in the last quarter of 2022 (instead of 1.1 % at first reading).
As an immediate consequence of these poor figures, the bond markets are continuing their deterioration that began in early February.
The US T-Bonds saw their yield jump by +6Pts to 4.056%, the ‘1 year’ reached 5.10% and the ‘6 month’ 5.18%.
Our OATs add +2.5Pts to 3.222%, Bunds +2.5% also to 2.7360% and Italian BTPs +4Pts to 4.604% (the highs of October 2022 are getting closer.
In company news, Veolia publishes current net income group share of 1.16 billion euros for 2022, up 29.7% (+27.7% at constant exchange rates) and an EBITDA of nearly 6.2 billion, up 7.2% at constant scope and exchange rates.
Vallourec publishes net income group share of -366 million euros for 2022, compared to +40 million in the previous financial year, and EBITDA (gross operating income) of 715 million euros, i.e. a margin of 14 .6% against 14.3% in 2021.
SMCP (Sandro, Maje, Claudie Pierlot) announces, for 2022, a doubling of net profit to 51 million euros and a sharp increase in adjusted EBIT to 111 million (9.2% of turnover). business) compared to 96 million in 2021.
Finally, Technip Energies publishes adjusted EPS of 1.79 euros for 2022, compared to 1.39 euros the previous year, as well as an adjusted recurring EBIT margin up 50 basis points to 7% for a adjusted revenue down 4.6% to 6.42 billion.
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