(CercleFinance.com) – The Paris Bourse (-1.4%) is accelerating its slide, which began on January 5: the CAC40 (7.115) is rapidly approaching 7.100 and shows more than 100 points of decline compared to its levels of opening while Wall Street reopens sharply lower, with a Dow Jones at -1.5% (towards 35,700), the Nasdaq aligning a 9th session of decline on a series of 10, the support of the 15,000 is definitely shattered with a 5th consecutive decline (-2.3% on Monday) to 14,600, a low for 3 months.
The S & P500 was heavily weighed down by its ‘techno’ component (the ‘SPDR techno’ ETF fell -2.6%) and dropped -1.8% (Amazon posted -3.5%, Nvidia -5%): it in turn threatens support at 4.600.
It is a real wave of ‘risk-off’ which weighs down the crypto compartment with -7 on Bitcoin, which fell back to $ 40,000, which compromises the support of $ 41,000.
The Euro-Stoxx50 has just crossed the -1.5% mark down (towards 4,240) while the yield on US T-Bonds is flirting with 1.80%, a level more observed since the end of January 2020 (the ‘ 30 years’ exceeding 2.12%).
It is a fall all the more ‘spontaneous’ since no leading indicator appears on the agenda of the day.
Investors appear to be gearing up for another turbulent week as the events of the past week have heightened fears of a faster-than-expected rate hike in the United States.
The unexpected ‘hawk’ tone of the Fed’s ‘minutes’ – released last Wednesday – caused US government bond yields to rise sharply, a dynamic that made investors nervous.
‘The American bank Goldman Sachs now expects four rate hikes in 2022 and a reduction in the balance sheet which should start in July at the latest,’ the IG teams recalled this morning.
Over the past week, the Parisian market has grown by 1%, but the trend has been much less positive on the side of New York, where the Dow Jones lost 1.9% last week.
This is the worst annual start for the US index since 2016, not very encouraging news when we consider that the first days of the stock market year generally determine the trend of Wall Street over the whole year. .
The evolution of the stock markets in the coming days will largely depend on developments in the interest rate market, knowing that stakeholders may also react strongly to the latest economic statistics.
It is in this delicate context that the latest consumer price figures in the United States will be unveiled on Wednesday, which could well show an acceleration in inflation.
The next few days will also be punctuated by the publication across the Atlantic of producer prices, retail sales and industrial production, which could show that activity has held up well to the Omicron surge.
In the meantime, long rates in Europe are returning to equilibrium after a morning of heaviness, the Dollar is recovering vigorously, by + 0.6% towards 1.1290 / E.
Gold escapes the general purge with + 0.2% to $ 1,795.
In the coming weeks, investors will also focus their attention on the first publications of annual results, in particular with a view to assessing the impact of the cost increases suffered since the summer.
Banking giants JPMorgan Chase, Citi and Wells Fargo will unofficially kick off the earnings season this Friday with their fourth quarter accounts.
On the securities side in France, the Atos group (-18%) is heavily penalized after announcing a turnover of around 10.8 billion euros in 2021, down by around -2.4% at constant exchange rates. The group was aiming for a ‘stable’ annual target.
The operating margin rate is around 4% of sales in 2021. The annual target was around 6%.
It is also values that reflect the Nasdaq that fall the most heavily today, with spreads greater than -4.5% on Eurofins, Worldline, Teleperformance (-6.1%), and luxury is also starting to suffer. (Hermès -5.2%).
According to information communicated by Euronext Paris, 363,641,261 Suez shares have been tendered to the offer. In total, based on the number of shares outstanding at November 30, 2021, Veolia is able to hold 551,451,261 shares, representing 86.22% of the capital and voting rights of Suez.
Sodexo announces the signing of an agreement for the acquisition of Frontline Food Services (operating commercially under the Accent Food Services brand). This company is a major player in the fast-growing take-out snacking and vending market in North America.
CGG said this morning that revenue from its operations is expected to be around $ 301 million in the fourth quarter. This figure shows an increase of 15% in ‘proforma’ data (excluding GeoSoftware, currently being sold) on a sequential rate and of 12% over one year. Over the full year 2021, business revenue is expected to be around $ 941 million.
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