(CercleFinance.com) – The Paris stock market (+1.6% to 7,302) is barely catching its breath, while the rebound on Wall Street is a little withered (from +1% around 3:30/4 p.m. to +0, 6% on average at 5 p.m.).
The CAC erased from the start of the afternoon, and with disconcerting ease, the 1.8% lost on Friday and even climbed beyond that with +1.9% to 7,324… longs which continue to tighten (with an OAT at 3.05% against 3.01% on Friday).
The Euro-Stoxx50 shows the same river score (+1.7% to 4,250), Frankfurt takes +1.5%.
Friday’s decline was attributed to a US inflation figure that had upset the markets: today it’s up the same, but there is no ‘lucky’ figure to justify this rebound.
The rise had even peaked the day before the publication of a 4.5% drop in durable goods orders in the United States last month, after a 5.1% increase in December 2022 (revised from a Commerce Department’s initial estimate of 5.6% in December).
But beware: excluding transportation equipment (including aviation), where orders plunged 13.3% month-on-month, US durable goods orders rose just 0.7% in January.
On Friday, it was easy to argue: ‘Markets are adjusting to the risk of a stronger and longer tightening’ according to Jeanne Asseraf-Bitton, head of research and strategy at BFT IM.
Today, we will have to settle for the ‘return of the latecomers’, taking advantage of a market trough.
In this context, the European Central Bank (ECB) will meet its Governing Council in Frankfurt on Thursday March 16, followed the following week by the Federal Reserve, which will convene its Monetary Policy Committee (FOMC) on March 21 and 22.
In the economic chapter, investors will be particularly attentive to the publication, this Wednesday, of the latest European manufacturing PMIs before the publication, on Thursday, of the latest inflation figures in the euro zone.
After the European indicators, the market will follow, on Friday, the announcement of the ISM for services in the United States.
On the bond front, unlike Europe, T-Bonds improved a little, to 3.92 against 3.95%, the Dollar suffered the backlash (7 Pts of yield differential) and fell back -0, 5% towards 1.0600/E.
In corporate news, SES (-6%) publishes for the year 2022 an adjusted net profit down 41.5% to 189 million euros, but an adjusted EBITDA up 1.3% to just over 1.1 billion euros and a turnover up 9.1% to around 1.94 billion.
Thales announces that it plans to recruit more than 12,000 employees in 2023, in order to support its strong growth momentum in its three business sectors: aerospace, defense-security and digital identity-security.
On the occasion of the 2023 edition of the Mobile World Congress in Barcelona, Schneider Electric, Capgemini and Qualcomm announce their collaboration for the implementation of an innovative 5G solution for automated lifting intended for industrial environments.
Finally, Airbus on Monday unveiled its ambitions in the Pacific zone, where the aircraft manufacturer plans to deliver 920 new aircraft over the next 20 years. Airbus says it sees the region as a ‘key’ market. At present, its order book in the region totals 166 aircraft, which represents 75% of the total pending orders in the region.
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