(CercleFinance.com) – The Paris Stock Exchange maintains good gains (+0.8% to +0.9%): today’s session – with a return above 4,750 – allows the weekly balance sheet to return to positive from +0.5%, a gain that was not self-evident Thursday evening in light of the closing of the US indices… and especially the declarations of 3 members of the FED who all made the same speech: a drop in rate from March appears premature.
Today’s rise coincides with the start of the results season in the United States, but it is difficult to provide a plausible explanation for the rebound of +0.7% towards 4,475 in the E-Stoxx50 (i.e. + 0.2% weekly)… a fragile margin to be confirmed by 5:35 p.m.
Indeed, after a promising opening, Wall Street is reversing course and is now losing ground, perhaps handicapped by the contrasting results of the banking giants which opened the ball with quarterly publications.
The Dow Jones lost -0.6%, the Nasdaq -0.2% (it fell by -100 points in 1 hour from 15,040 to 14,940).
The S&P 500 went from 0.4% (it crossed the 4,800 mark for the first time intraday since January 4, 2020) to -0.2% at 4,775.
If JPMorgan (+0.6%) was able to reassure investors with solid accounts in the fourth quarter, Citigroup (-1.5%) suffered a heavy loss of $1.8 billion due to heavy charges and Wells Fargo (-2.3%) saw its provisions for doubtful debts increase.
Tension in the Middle East rose again overnight, as the United States and the United Kingdom carried out strikes against the installations of the Houthi rebels in Yemen.
This causes tension on oil prices, WTI shows a gain of 1.3% to $73.8 just like gold, which is rising (+1.5%) towards its historic highs (at 2,062 $).
On the economic side, the Labor Department announced that producer prices fell by 0.1% in raw data in December, but increased by 0.2% excluding food, energy and commercial services.
These figures do not have much impact on the dollar, which remains stable against the euro, nor on the yield of 10-year Treasuries, which relaxes by -3Pt towards 3.958% and thus returns to its levels of January 3 : Back to square one.
Our OATs also relaxed by -6Pts to 2.682% and Bunds by -5Pts to 2.158%… which is the most favorable development that could explain the revival of the CAC40 and the Euro-Stoxx50.
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