CAC40: in the green, Wall Street on the same trajectory

[ad_1]

(CercleFinance.com) – The Paris stock market ends the day with a gain of 1.3%, to 6,430 points, benefiting in particular from the sharp rebound of Engie (+ 5.3%) which presented promising quarterly results this morning .

This bullish wind is also blowing in Frankfurt (+1.6%), on the E-Stoxx50 (+1.5%) as well as in London which assumes 0.7%. Wall Street is also in the green, with +1.4% on the S&P 500 and 1.8% on the Nasdaq.

This morning, investors were able to take note of figures showing a very slight decline in unemployment, within the meaning of the ILO, in France.

Indeed, it fell by 0.1 point, to 7.3% of the active population in France (excluding Mayotte) over the first three months of 2022, after having fallen by 0.6 point the previous quarter, according to INSEE data.

Lower by 0.8 point than its level a year earlier, and 0.9 point lower than before the health crisis, it has returned to its lowest level since the beginning of 2008, if we exclude the one-off fall the eye of spring 2020, during the first confinement.

The number of unemployed persons according to the ILO definition fell by 18,000 compared to the previous quarter, to 2.2 million people, but 1.8 million people who were inactive according to the ILO definition wanted a job without being considered unemployed (halo around the unemployment).

Moreover, with the rise in interest rates and bond yields, investors have begun to adjust their portfolios more tactically in order to better reflect the new economic situation.

‘Market attention has clearly shifted away from concerns about inflation to concerns about growth,’ explain Barclays strategists.

“The signs of panic are not yet visible, with a correction which has remained measured so far and volatility which remains within its historical range of the last few months”, underlines the London establishment.

After disappointing statistics from China, investors learned of the publication, at the start of the afternoon, of the latest consumption figures in the United States.

After rising 0.9% in March, U.S. industrial production rose another 1.1% last month, according to the Federal Reserve, further growth significantly stronger than economists on average had hoped for.

The statistics should allow them to refine their forecasts for US growth in the second quarter.

‘Despite the surge in inflation which has weighed heavily on consumer morale, we have not yet observed a clear moderation in the volume of expenditure’, argue the economists at Oddo BHF.

Investors also watched the flash estimate of eurozone GDP for the first quarter, which was released late morning.

The rise in the gross domestic product (GDP) of the 19 countries sharing the euro stood at 0.3% over the January-March period compared to the previous three months, shows the latest estimate from Eurostat, after +0.3% in the fourth trimester.

Over one year, that is to say in comparison with the same quarter of the previous year, growth stands at 5.1%, against +4.7% in the last quarter of 2021.

On the central bank side, the interventions of Fed boss Jerome Powell and ECB President Christine Lagarde at two economic conferences will also be closely followed.

All these events should further fuel the debate on the rise in rates, which is now the dominant factor in the markets.

On the bond market, the yield on 10-year Treasuries fell below the 2.90% threshold yesterday, which gave the markets some oxygen after the highs reached last week.

In the news of French companies, Engie indicates that it is revising its annual objectives upwards to now forecast that its net recurring income group share for the year 2022 will be in a range of 3.8 to 4.4 billion euros. .

For the first quarter, the energy group published an EBIT up 74% to 3.5 billion euros and an EBITDA up 49% to 4.6 billion, for a turnover up 85% to 25.6 billion, ‘under exceptional market conditions’.

Thales announces the signature of a definitive agreement with Sonae Investment Management for the purchase of two leading European cybersecurity companies, S21sec and Excellium, acquisition for an enterprise value of 120 million euros.

Atos announces the signing of a three-year agreement with Sparkle to meet growing customer demand in Europe and other adjacent countries for cloud services and solutions.

Finally, UBS reaffirms its ‘buy’ recommendation on Crédit Agricole despite a price target reduced from 13.4 to 12.4 euros, a new target, however, leaving a potential for growth of 21% for the title of the French bank.

The broker highlights an “increase in provisions linked to Russia which leads to a reduction in profits for 2022”, and estimates that “the drop in CET1 in the first quarter to 11% leaves Crédit Agricole in a slightly less comfortable situation”.

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



[ad_2]

Source link -85