CAC40: caution dominates, Wall Street in red


(CercleFinance.com) – After having spent almost the entire session in the red, yielding nearly 1% at midday, the Paris stock market moved closer to its equilibrium point at the end of the day.

At the final gong, the CAC only yields 0.21%, to 7082 points, notably driven by Thalès (+1.6%) and Kering (+1.5%) but penalized by Renault which drops nearly 4.1 % after discussions with Nissan around a reduction in the partnership.

The decline is more marked on Wall Street, where the S&P fell 0.6% behind the Nasdaq (-1.3%)

Investors want to be cautious at the start of a week which will be marked by the publication of more than 100 components of the S&P 500, including 6 of the Dow Jones index.

In addition to this flurry of results, the week will be marked by the meeting of the Federal Reserve’s monetary policy committee, which will start tomorrow. 24 hours after the Fed’s statement on Wednesday, the other highlight of the week will take place on Thursday, with the monetary policy decision of the European Central Bank (ECB).

If a rate hike of 50 basis points is widely anticipated at the end of its board of governors, investors will carefully scrutinize the words of its president, Christine Lagarde.

On the statistical side, Germany’s GDP fell by 0.2% in the 4th quarter of 2022 compared to the 3rd, according to data adjusted for price, seasonal and calendar variations from Destatis because private consumption expenditure, which had supported the German economy in the first three quarters, fell short of expectations in the 4th.

The federal statistics office also indicates that over the whole of 2022, economic growth was 1.9%, which means a downward revision of the initial estimate of 0.1 percentage point. .

More encouragingly, the economic sentiment indicator (ESI) recovered further compared to the previous month in January in the European Union (+2.3 points to 98.0) as in the euro zone (+2.8 points at 99.9), according to the European Commission.

“With this third consecutive increase, the ESI is approaching its long-term average”, underlines Brussels which notes rising confidence in industry, services, retail trade and among households, but in decline in the construction.

The employment outlook indicator (IEE) also increased (+2.3 points to 108.5 in the EU and +2.7 points to 110.1 in the euro zone) and is therefore clearly above its long-term average.

The bond markets started the week down with yield increases of around +6 on our OATs or Bunds (at 2.770% and 2.3040% respectively, Italian BTPs posted +7Pts at 4.3000%… and the US T-Bonds post +3.3Pts at 3.552%

In corporate news, Renault Group (-4.1%) announces that it has made progress in its discussions with Nissan Motor on the definition of the new bases of their partnership: agreements are being finalized for a transaction which will remain subject to the Board approval.

They are thus considering operational projects ‘with high value creation’, and new initiatives to strengthen their strategic agility, including a possible investment by Nissan in Ampere, a pure player in electricity and software founded by Renault.

Sanofi announces that Brussels has extended the marketing authorization (MA) of its Dupixent in the EU, making it the first and only targeted drug indicated expressly for the treatment of eosinophilic esophagitis in Europe and the United States -United.

Orpea – suspended from quotations on Monday – announces the resumption of discussions with a group of third-party French investors led by the Caisse des Dépôts et Consignations, and a group of financial creditors holding approximately 50% of its unsecured debt, of a amount of 3.8 billion euros.

Saint-Gobain announced on Monday the finalization of the acquisition of Termica San Luis, an Argentine stone wool specialist, an operation aimed at strengthening its presence in the country.

Finally, Safran announces that its greenhouse gas emission reduction targets have been validated by the independent Science Based Targets initiative (SBTi).

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