(CercleFinance.com) – The Paris stock market regained almost 1% on its lows of the day (6,846 pts) but still lost -1.6% towards 6,910, or 140 pts for the month than at the very beginning of the morning.
Investors remain inclined to be cautious given the expectations of rate hikes in the United States and the rise in geopolitical tensions…
While negotiations are still ongoing on the Ukrainian issue, the risks of short-term conflict remain and will worry the markets until a solution has been found.
Still on the geopolitical level, Aurel BGC announces that the EU has initiated proceedings against China before the WTO, pointing to discriminatory trade practices against Lithuania.
On the macroeconomic front, the data published on Friday are generally disappointing.
Household consumption expenditure (figure published at 2:30 p.m.) contracted by 0.6% in December 2021 compared to the previous month in the United States, according to the Commerce Department.
Their income, on the other hand, rose by 0.3%, in line with the consensus, knowing that record bonuses were expected in the finance sector.
On an annual basis, the rate of increase of the PCE price index increased by 0.1 point to +5.8% in total data, and by 0.2 point to +4.9% excluding energy and food .
Across the Rhine, Destatis reports a 0.7% decline in German GDP in the 4th quarter of 2021, in data adjusted for prices and seasonal and calendar variations, compared to a 1.7% increase recorded in the third quarter . On an annual basis, GDP is reduced to +1.4% against +2.9% in Q3, a drop of only -1%, towards 1.9% was expected.
In addition, French GDP growth continued in the fourth quarter (+0.7% after +3.1%, i.e. +7% at an annual rate after -8% in 2020), but at a more moderate pace than in the previous quarter, as well as that of the Spanish GDP (+2%, or 0.6 points less than in the third quarter).
Other data published this Friday morning, the economic sentiment index (ESI) fell further in January compared to the previous month, both in the EU (-1.4 points to 111.6) and in the euro zone. (-1.1 points to 112.7), but remained high overall, according to the European Commission.
Yesterday on Wall Street, the favorable trend that had marked the start of the session after encouraging economic data faded afterwards: the Dow Jones ended just below its balance, at 34,161 points, while the Nasdaq Composite s sank by 1.4%.
At current levels, the heavily tech-weighted index is still down more than 14% since the start of the year, prompting some market participants to judge that the market has become ‘oversold’.
“We believe it is now time to take advantage of the opportunity presented by this downturn to put the cash set aside to work in well-chosen sectors,” said Scott Wren, strategist at Wells Fargo.
The analyst says he particularly appreciates the technology and telecoms sectors because of their marked underperformance over the past month.
Another support factor for the markets, corporate results (sparkling for Apple and LVMH) will continue to fall this Friday, with in particular the publication of heavyweight Caterpillar and Chevron expected before the opening of New York.
In the news of French stocks, LVMH (+ 2%) published last night sales of 64.2 billion euros for the 2021 financial year, an increase of 44% compared to 2020. The net profit group share shows an increase of 156% in one year, to 12 billion euros.
The tumble of Orpea (+4%) and Korian (+5.6%) finally seems to be coming to a halt after new lows tested in the morning at 37.25E and 19.18E respectively.
For its part, JC Decaux (+13%) unveiled adjusted revenue for 2021 of €2,744.6 million, representing organic growth of 18.5% compared to the previous financial year, driven in particular by very strong growth in the digital and a fourth quarter above expectations.
In addition, following the favorable opinion of the European competition authorities, the multi-technical services group Spie (-1%) announces that it has finalized, on January 25, the acquisition of Worksphere, a Dutch specialist in building services smart and sustainable.
Finally, SES-imagotag reported ‘record’ sales for its fourth quarter and fiscal year 2021. In the last three months of the year, its turnover stood at 132.3 million euros, representing a growth of 34% year-on-year.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
