(CercleFinance.com) – The Paris Stock Exchange gained more than 3.8% (to 6,600) after rocketing up to around 6,660 around 3:15 p.m. on the announcement of the ‘1st high-level contact between the United States and Russia’ on the Russian-Ukrainian crisis (after the morning talks between the 2 belligerents had failed (the scenario for ending the crisis in the short term therefore remains very hypothetical).
The CAC40 thus posted +900Pts recovered in 6 sessions, or +16% despite a geopolitical context which remains heavy and a barrel anchored beyond $100.
But the managers had sold a lot since February 22 and found themselves with too much cash (compared to the level forecast in their mandates) and the surge of +2.5% from the first trades triggered a kind of ‘FOMO’ rally. .
The crossing of the resistance of 6.400Pts via a ‘gap’ activating massive automated purchase programs and redemptions of ‘short’ in ‘panic buying’ mode.
This second bullish episode (one week after +7% on March 9) is good, 48 hours from the ‘4 witches’ session since it reduces the loss of the ‘March contract’ to -4.5% and the loss since the 1st January at -7.5%, which is not very damaging compared to the 31% gained in 2021.
The day had started well, with a surge of +9% in the Hong Kong stock market (after -11.5% on Monday and Tuesday): according to several market sources, Chinese Vice-Premier Liu He would have mentioned a series of measures aimed at supporting the economy and stabilizing the financial markets.
These decisions could include initiatives to encourage institutional investors to increase the share of equities in their portfolios.
In mainland China, the CSI 300 index of the largest Chinese companies listed in Shanghai and Shenzhen gained more than 4%.
The Tokyo Stock Exchange ended with more limited gains of 1.6%.
On Wall Street, the opening is positive as expected, with gains of +1.1% for the Dow Jones and +1.6% for the S&P500… but with the rebound of the ‘technos’ in H-Kong , the Nasdaq stands out with a surge of nearly 3% to 13,300Pts.
Markets’ attention will turn this evening to Washington, where the US Federal Reserve will unveil its monetary policy decisions.
Investors are almost unanimously anticipating an increase in key rates by 25 basis points, accompanied by a communication confirming the continuation of the increase at the end of each of the next meetings in 2022.
Several statistics were also on the agenda for the day in the United States: retail sales in the United States rose by 0.3% last month, after a rebound of 4.9% in January (revised from an estimate which was +3.8%), according to the Commerce Department, a further increase, however, a little below the consensus.
Excluding the automotive sector (vehicles and equipment), US retail sales rose 0.2% in February (after a 4.4% gain the previous month), where economists expected a significantly stronger increase in February. average.
The good news comes from US import prices, which slowed their growth to +1.4% in February, in a context that remains marked by the rise in the cost of petroleum products, the Department of Labor announced on Tuesday.
Imported fuel prices rose 6.9% in February, following a 7.7% increase the previous month.
Over the 12 months to the end of February, import prices posted an increase of 10.9%, including a 53% surge in fuel costs.
In line with expectations, US business inventories rose 1.1% in January, after rising 2.4% the previous month.
At the current rate, it took 1.25 months for businesses to sell their inventory in January, compared to 1.30 months in the same month last year.
Pending the FED press release, T-Bonds set a new annual record of 2.200% (and 2.18% at 4:45 p.m.) our OATs are also under pressure (+3Pts) with a record yield of 0.845%, Bunds are showing +5pts to 0.3790%.
The Euro strengthened slightly against the Dollar and the Swiss Franc (+0.1%), Gold stabilized at around $1,920, the barrel of oil ‘Brent’ rebounded by +1% towards $100 after $103.5 high this morning.
In the news of French stocks, banks, car stocks and luxury dominate the ranking with increases often exceeding +10% (Faurecia shows +11%).
TotalEnergies announces that as part of its exit process from Myanmar, announced last January, PTTEP International has confirmed its desire to take over the role of operator from Yadana and MGTC. PTTEP has made known its desire to take over all the staff of the French group’s subsidiary in Myanmar, and to increase its direct stake in Yadana with its share of the interests of TotalEnergies.
Atari indicates that its board of directors has decided to submit to the ordinary general meeting of shareholders on April 20 the plan to transfer the listing of its shares from the regulated market Euronext Paris (Compartment C) to Euronext Growth Paris.
This project aims to allow it to be admitted to trading on a market more appropriate to its size and market capitalization.
Finally, as part of its share buyback program, Pernod Ricard announces that it has signed an agreement with an investment services provider (ISP) relating to the acquisition of its own shares, for a maximum amount of approximately 200 millions of euros.
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