(CercleFinance.com) – The Paris stock exchange (+0.3% to 7,100) has seen its lead melt away since 4 p.m. but has posted an 11th session increase (out of 13) since January 2, which makes it one of the most long bullish series (cumulative gain of +9.7%) without a 0.5% retracement in history, and certainly the longest series at the start of a year since the Paris stock exchange has existed.
The CAC40, which briefly tested 7.115, had well anticipated the publication of a series of indicators confirming the trend towards a slowdown in inflation, thanks to the net decline in energy prices.
According to professionals, the achievement of the target level of 7,085 points could constitute the culmination of a first medium-term objective… but the rise continues inexorably.
As for the CAC40 ‘GR’, it has reached 20,900 and is only 0.5% away from its absolute record of January 5, 2022: for technical analysts, even a difference of 1% is enough to characterize a historical double-top in the event of a decline from the daily highs.
But 48 hours from the ‘3 witches’ session, everything will be done to keep the indices at their zenith.
it seems a bit laborious on Wall Street since the Dow Jones yields -0.5% and the S&P500 -0.2%, but investors are flocking to Europe and it’s a bottom wave that nothing can stop.
In the United States, the overall rise in producer prices slowed markedly, by -0.5% in December 2022 compared to the previous month, but core inflation increased by 0.1% excluding food, energy and commercial services.
Over the last twelve months, the rise in producer prices stood at 6.2% in raw data and at 4.6% excluding food, energy and commercial services, after annual rates of respectively 7.3% and 4, 9% observed in November.
Retail sales in the United States fell more than expected in December 2022, shrinking 1.1% after falling 1% the previous month, according to the Commerce Department.
Excluding the automotive sector (vehicles, equipment and gas stations), US retail sales contracted by 0.7%.
After falling 0.6% in November 2022, US industrial production fell again last month, by 0.7%, according to the Federal Reserve, a much larger drop than that expected on average by economists.
In detail, manufacturing production contracted by -1.3% and that of extractive activities by 0.9%, while that of ‘utilities’ jumped by 3.8%, the cold temperatures having stimulated the heating demand.
Production nevertheless increased by 1.6% compared to its level of the previous year, the share of energy (gas and oil) is fundamental.
The industrial capacity utilization rate fell by 0.6 points to 78.8%, a level 0.8 points below its long-term average (1972-2021).
Investors also took note of the final figures for consumer prices in the euro zone for the month of December: the annual inflation rate stood at 9.2% in December 2022, against 10.1% in November , according to Eurostat, which thus confirms its rapid estimate for the last month of last year.
The annual inflation rate in the European Union stood at 10.4% in December 2022, compared to 11.1% the previous month, with the lowest rate observed in Spain (5.5% ) and the highest in Hungary (25%).
These figures are very well received on bonds with a further easing of -12pts on our OATs at 2.417%, -10pts on Bunds at 1.9880% and on Spanish Bonos (-14pts at 2.927%) and Italian BTP erase almost -20Pts to 3.695%.
Also improved on the US side with T-Bonds at -13.5 Pts towards 3.400%.
The Dollar relapses by -0.5% and retraces its annual low, towards 1.0870E.
Note a new bullish push on oil with Brent at $87.2 in London (+0.7%).
In the news of French companies, Renault Group announces its worldwide sales figures for 2022. They amount to 2,051,174 vehicles, down 5.9%.
Stellantis has signed an agreement with Terrafame for the supply of nickel sulphate for electric vehicle batteries.
BNP Paribas announces the receipt of regulatory authorizations for the finalization of the sale of its American subsidiary Bank of the West to BMO Financial Group, a transaction which was the subject of an agreement announced in December 2021.
Lastly, Pierre & Vacances published yesterday evening a group turnover for the 1st quarter of 390.7 ME, up 9.9% compared to the same period during the previous financial year.
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