(CercleFinance.com) – The Paris stock exchange ended the day’s session with a gain of 0.39%, to 6,533 points, after starting the day with a bang, gaining up to +1.4% towards 6,601.
But it was quickly obvious that the index was progressing in a vacuum (traders know that prices are very often drawn on the last day of the month to embellish the calendar performance) and the buying relays quickly ran out… and the CAC fell back to equilibrium around 1 p.m.
The CAC40 then recovered by +0.9% around 3 p.m. before losing almost everything once again: in all 2 ‘saloon door’ sequences in the space of just 6 hours.
European markets are still in the green despite everything (the E-Stoxx50 is up 0.5%, London is at +0.3%, Frankfurt at +0.6%) taking advantage of the positive trend this Friday in Asia, where operators continue to bet on the positive fallout from the measures taken by the Chinese authorities.
The CSI 300 index of large caps in mainland China thus posted gains of almost 2% at the end of the session. For its part, the Hong Kong Stock Exchange took not far from 3% at the close.
Another supporting factor, Beijing has reported a steady decline in confirmed Covid-19 cases for the past ten days, with a ‘return to normal’ in the lives of residents and a resumption of production in some parts of the world. country.
Across the Atlantic, on the other hand, Wall Street is in the red with the S&P500 and the Nasdaq yielding 1.6% and 1.7% respectively. The Nasdaq is notably weighed down by the -12% plunge by Amazon which announced a quarterly loss of $3.8 billion) while the Dow Jones limits the damage (-1%).
The scores didn’t change much in pre-opening after the release of US household consumer spending.
These expenditures increased by 1.1% in March compared to the previous month in the United States, according to the Department of Commerce (Jefferies anticipated an increase of 0.8%).
The most closely watched component remains the ‘PCE’ price index (personal consumption expenditures) which adds +0.3 points to +6.6% (annualised) but is ‘calmed down’ by -0.1 points to +5, 2% excluding energy and food.
Finally, household income rose 0.5% in March (Jefferies was anticipating a 0.4% rise).
The good barometer of consumer confidence in Michigan does not motivate Wall Street: ‘UMICH’ stood at 65.2 this month, against 59.4 in March, a gain of 9.8%.
The University of Michigan highlights a sharp rise in the ‘consumer expectations’ component from 54.3 to 62.5 with the hope of a drop in the price of gasoline.
Bond markets look set to end the week at their lowest, at the worst levels seen since 2019 to 2017 in Europe.
Our OATs add 3Pts to yield at 1.432%, Bunds +2Pts at 0.9200% (the 1.000% mark is getting closer), Italian BTPs +34Pts at 2.757%: they are thus getting closer to US T-Bonds (+2Pts at 2.883%, the ’30 years’ is flirting with 3.00%).
As for European figures, the preliminary flash estimate of euro zone GDP for the first quarter came out at +0.2%, with annual inflation in the euro zone increasing slightly to 7.5% in April (it on the other hand slowed down in Italy to +6.2% but GDP fell by -0.2% in Q1).
Earlier this morning, INSEE announced that French GDP had stalled in the first quarter, with a zero quarterly change, notably under the effect of a sharp decline in household consumption.
According to the estimate carried out at the end of the month by INSEE, consumer prices should increase by 4.8% in April 2022, after +4.5% the previous month.
Household consumption of goods in volume fell sharply in March 2022 according to INSEE (-1.3% after +0.9% in February – revised data). This decrease is mainly due to the decline in food consumption (-2.5%).
The publications of results will continue to punctuate the session (a few heavyweights of the rating such as BASF and Safran published their accounts this morning).
Safran’s sales (-2.1%) amounted to 4,071 ME in the 1st quarter of 2022, up 21.8% compared to the 1st quarter of 2021 and 16.9% on an organic basis. The group is aiming for revenue of between 18.0 and 18.2 billion euros in 2022 (at a EUR/USD spot exchange rate of 1.14 against 1.18 previously), a current operating margin of approximately 13, 0% and free cash flow generation of around 2.0 billion euros.
Saint-Gobain (+1.3%) published yesterday evening a turnover of 12 billion euros for the 1st quarter of 2022, up 16.4% at comparable structure and exchange rates compared to the same period a year earlier, thanks to ‘very dynamic internal growth on buoyant underlying markets’.
Finally, the Accor Group (+1.5%) recorded revenue of 701 million euros for the first quarter of 2022, up 85% at constant scope and exchange rates (lcc) compared to the first quarter of 2021. During the first quarter of 2022, the Group’s RevPAR more than doubled (+108% in published data) compared to the first quarter of 2021 but still shows a decrease of -25% compared to the first quarter of 2019.
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