(CercleFinance.com) – The Paris stock market ends the day’s session with a gain of 0.48%, at 6,999 pts, after a session marked by high volatility: the Parisian index gained up to 1% this morning before falling into the red around 2 p.m. (-0.45%) and finding contact with 7,000 pts this evening.
The balance for the month of January amounts to around -2.2% but it is above all the nervousness of the exchanges which marks a break compared to a unidirectional year 2021.
Across the Atlantic, the S&P 500 gained 0.5%, the Nasdaq rose 1.8% while the Dow Jones lost less than 0.1%.
And as often, when the trend becomes favorable again, investors flock to luxury stocks: +2.4% for L’Oréal, +1.8% for Hermès, +1.3% for Kering.
The Frankfurt stock exchange (+0.75%) went it alone on the rise for a long time on Monday thanks to the decline in annual inflation in Germany in January: it is estimated at +4.9% according to the preliminary estimate from the federal statistics office, an annualized rate down 0.4 points from that of the previous month.
“The inflation rate remains high despite the absence of the base effects caused in 2021 by the temporary reduction in value added tax rates and the sharp drop in mineral oil prices in 2020,” notes Destatis.
On a harmonized basis according to European standards, monthly and annual price variations are estimated at +0.9% and +5.1% respectively in January.
But that was without counting on the oil’s rise above $90: the month of January is perhaps only a parenthesis, a temporary lull.
In the United States, the Chicago PMI came out slightly up in January (65.2 against 63.1) but what occupies all the conversations is the level of inflation which reached +7% in raw data. and +5.5% in ‘PCE’ estimate. That’s a lot… and even too much: what if the FED started its rate hike cycle with a 50pt turn of the screw in mid-March?
Raphael Bostic, the head of the FED of Atlanta put this hypothesis on the table this weekend, which did not take long to weigh on the ‘futures’ and prefigures a reopening in decline of the Dow Jones and the S&P500.
This week will still be very busy with publications of company results on both sides of the Atlantic, such as Alphabet, Amazon, AMD, ExxonMobil, Meta or Nokia in particular.
The operators will also follow with interest – and concern – the evolution of the Ukrainian file and the negotiations between NATO and Russia.
Main meeting of the week, the ECB’s monetary policy meeting on Thursday, should not give rise to major announcements from the institution.
“The arguments in favor of the normalization of the monetary policy of the ECB are strengthening but a rate hike in 2022 is very unlikely”, we recall from the side of Generali Investments.
Investors are also counting on the series of economic indicators expected in the coming days to dispel their current concerns about the economy.
The preliminary flash estimate of the euro zone GDP for the fourth quarter, which will be published today, should allow them to know more about the impact of Omicron on the level of activity.
The sudden resurgence of volatility on the equity markets since the start of the year has taken many investors by surprise, accustomed to the regularly upward trajectory of the stock markets, even in times of pandemic.
With the return of volatility, 2022 promises to be more complex for investors given the reduced support from the Federal Reserve.
In this environment, many market participants should begin to take a more active approach to investing and actively rotate their portfolios as conditions change.
In the news of French companies, we learned of the ousting of the CEO of Orpea (-7% after +4% this morning), after the publication of a book-investigation denouncing the practices of the retirement home giant .
The title had lost nearly 50% in five days before resuming on Friday. The group’s general manager for France is summoned tomorrow by the deputy minister responsible for the autonomy of the elderly, Brigitte Bourguignon, to answer the questions raised by the investigation.
Sanofi announces that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency has recommended extending the indications of its Dupixent in the EU for the treatment of severe asthma associated with type 2 inflammation in the child aged six to 11 years.
TotalEnergies announces the signing of a Memorandum of Understanding (MoU) with the Rwanda Development Board, the Rwandan public body responsible for accelerating Rwanda’s economic development, for collaboration on projects related to the energy sector. energy.
The company also announced this evening to strengthen its presence in Mozambique via the acquisition of the network of service stations, the sale of petroleum products and the logistics assets of BP.
Finally, Thales Alenia Space announces that it has signed a contract with the South Korean aerospace and defense company LIG Nex1, providing for the supply of a state-of-the-art digital process for the GEO-KOMPSAT-3 telecommunications satellite.
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