CAC40: gains nearly 1% after hearing Powell


(CercleFinance.com) – After gaining up to 1.5% in the morning, the Paris stock exchange ended the day’s session with a gain of 0.95%, at 7,183 points. At the same time, the Euro-Stoxx50 arrogates 1%, just like the DAX (+ 1.1%).

Across the Atlantic, the Nasdaq advanced 0.7% and the S&P 500 grabbed 0.2% while the Dow Jones gave up 0.1%.

The decline in US rates is ultimately not very significant: the yield on ten-year Treasuries begins to fall by 1.800% towards 1.77% … but this remains above the highest levels observed at the end of March 2021 and close to the two-year high: inflation expectations are becoming a central issue.

This is what Jerome Powell has just reaffirmed before the commission which is hearing him to extend his term of 4 years.
He explains that the job market has recovered incredibly quickly and that the US economy no longer needs an ultra-accommodative monetary policy … or asset purchases since it is a question of reduce the Fed’s ‘balance sheet’.

As far as wages are concerned, their rise is often good news even if it keeps inflation at a high level.

Market participants will therefore closely follow the publication, tomorrow, of the latest ‘CPI’ figures in the United States.

Higher-than-consensus figures could well trigger a further rise in government bond yields and rekindle fears about future rate hikes.

Oddo BHF economists say they expect a moderation in consumer prices from one month to the next, but a further acceleration over one year linked to an unfavorable base effect.

In short, nothing to see much clearer on the future trajectory of inflation, admit private banking analysts.

‘The Fed can only remain on alert under these conditions,’ they conclude.

In addition, investors seem unwilling to commit too much before the start of the ‘season’ of quarterly results, which will kick off on Friday by banking giants JPMorgan Chase, Citi and Wells Fargo.

As for SBF-120 stocks, Technip Energie (+ 5.9%) reacts very favorably to the plan to buy back 1.8 million shares).
Alstom has signed a framework contract with Norske Tog (NT) to supply a total of 200 Coradia Nordic regional trains. Valued at more than 1.8 billion euros, this contract is the largest railway contract in Norwegian history. The value of the first firm order for 30 trains amounts to 380 million euros.

Airbus has signed a contract with Azorra for twenty-two A220 family aircraft, including twenty A220-300s and two ACJ TwoTwenty. Azorra is an aircraft rental company based in Fort Lauderdale, Florida, USA, which focuses on business, regional and mid-size (crossover) aircraft.

Plastic Energy and TotalEnergies (+ 1.8%) announce the signing of a new agreement to promote the technology of chemical recycling of plastics. Plastic Energy will build its second chemical recycling plant in Seville to transform, through their patented process, plastic waste into a recycled raw material called ‘TACOIL’.

Copyright © 2022 CercleFinance.com. All rights reserved.

Did you like this article ? Share it with your friends with the buttons below.


Twitter

Facebook
Linkedin
E-mail





Source link -85