(CercleFinance.com) – The Paris Stock Exchange ended this last session of the week with a gain of 0.69%, to 7023 points, claiming a weekly gain of 2.4%.
Since the start of the year, the rise in the Parisian index has reached 8.5%, thus signaling the best first fortnight on the stock market in 44 years for the CAC – the best in history in fact for all European indices.
After an initial decline of -0.5% on average, the US indices rebounded slightly, in particular with the publication of the consumer confidence index from the University of Michigan: this rose from 59.7 in December to 64 .6 in January when a previous estimate and the consensus were for 60.5.
The Nasdaq and the S&500 lost 0.2% while the Dow Jones gained 0.2%.
Still statistically, US import prices rose 0.4% last month, after falling 0.7% in November 2022, while export prices fell 2.6% in December, after a decline of 0.4% the previous month.
According to the Department of Labor, the variation over the last 12 months in US import prices rose by 3.5% (+1.9% excluding petroleum products) and those for exports increased by 5%. (+4.4% excluding agricultural products) in December 2022.
In Germany, according to the first calculations by Destatis, the price-adjusted German GDP for the year 2022 increased by 0.1% in the 4th quarter and by 1.9% compared to 2021 (thanks to the ‘growth acquis ‘ from the beginning of the year).
After adjusting for calendar effects, economic growth even rose to 2%.
“In 2022, the general economic situation in Germany was affected by the consequences of the war in Ukraine and the extremely high increases in energy prices,” explains Ruth Brand, president of the Federal Statistical Office.
‘There have also been severe shortages of materials and bottlenecks in deliveries, a massive rise in prices, for example of food, shortages of skilled labor and the continued but declining pandemic of Covid-19 ‘, she continues.
‘The stagnation of German GDP in the fourth quarter shows that high inflation has not spared the German economy’, reacts Commerzbank, for whom ‘a slight recession with a drop of 0.5% in real GDP remains probable’ in 2023 .
In Europe, industrial production rebounded by 1% in the euro zone in November, a much more marked increase than expected, show figures published Friday by Eurostat.
By way of comparison, economists on average were forecasting a limited increase of 0.5%, after a decline of 1.9% in October.
In detail, the production of capital goods increased by 1%, that of intermediate goods by 0.8% and that of durable consumer goods by 0.4%, while energy production fell by 0. .9%.
At State level, the strongest monthly increases were recorded in countries which precisely do not have much or very little industry, such as Ireland (+6.4%), Luxembourg (+5%) and Malta (+4.6%); the largest decreases are in Estonia (-3.7%) and Croatia (-1.9%).
Compared to November 2021, industrial activity in the region grew by 2%.
Investor interest will now shift to the corporate earnings season, which US banking groups kicked off today.
Citigroup unveiled results down -21% in the fourth quarter, to $2.51 billion due to an increase in provisions for bad debts.
The giant BlackRock unveiled profits down -23% (to $1.26 billion) in the 4th quarter and its turnover fell by 15% to $4.34 billion, but it is slightly higher than expected.
On the rate side, the bond markets digested their rise from the previous day, OATs improved at the margin to 2.612% against 2.622%, Bunds by 2.2Pts to 2.145% and US T-Bonds deteriorated by 1Pt to 3.454% .
The next few sessions are likely to be volatile as it is not uncommon for markets to hesitate until they can get an idea of the quality of the results and their outlook.
In corporate news, OVHcloud is claiming a very good start to the year with revenue of 216 million euros for the first quarter of its 2023 financial year, up 15.4% compared to the same period of the previous year.
TotalEnergies announces the start of the Deutsche Ostsee LNG LNG import terminal, located in Lubmin, on the German coast of the Baltic Sea, allowing the French company to become one of the main LNG suppliers in Germany.
Air France-KLM jumped by nearly 6% and thus prances at the top of the SBF120, surrounded after an increase in the recommendation from ‘neutral’ to ‘buy’ at UBS, with a price target raised from 1.75 to 2 euros on the title of the Franco-Dutch air carrier.
EDF and Respect Energy, a European renewable energy operator and trader based in Poland, announced the signing of a cooperation agreement for the development of nuclear projects based on SMR NUWARD technology at specific sites in Poland.
Engin, Societe Generale and Pegasus Airlines, Turkey’s low-cost airline, announce that they have concluded the first-ever aircraft-secured sustainability-related loan under export credit agency guaranteed financings.
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