(CercleFinance.com) – The Paris stock market only shows +1.1% to +1.2% (around 6,270) while Wall Street becomes very undecided with an almost stable S&P500 and a Nasdaq at -0.6% .
Wall Street is a bit showered by the University of Michigan confidence index for March which fell -3.1 Pts, from 62.8 to 59.7, its lowest level since September 2011.
The ‘outlook’ component plunged from 59.4 to 54.4, the worst score since October 2011…several points below the ‘health shock’ of April 2020.
The CAC40 had suddenly accelerated upwards (+2.5% in a few minutes to reach +3.5% at 6,390) around 12:30 p.m., but caution returned on the eve of the weekend.
Ditto in Europe with an E-Stoxx50 income of +3.6% to +1.5%.
The buyers were a little inflamed following the words of V.Putin evoking a ‘rapprochement’ of points of view between Ukraine and Russia.
But “at the same time”, he indicates that he wants to facilitate the sending of volunteer fighters alongside the Russian army in order to respond to the arrival of Western volunteers on the Ukrainian side.
Europe does not allow itself to be counted and ignores the ‘verbal’ signs of relaxation on the part of the belligerents: Ursula Von der Leyen has just announced the implementation of a 4th set of ‘even tougher’ sanctions against Russia and the oligarchs, believing that putting pressure on is the only way to make the Kremlin boss bend.
E.Macron discuss future measures against Russia of unprecedented severity…
All that is missing – it’s a detail – are the demands of the Europeans: do they demand a ceasefire, the immediate evacuation of Ukraine and the Donbass, are the sanctions reversible if Putin backtracks?
On the ground, the establishment of ceasefires and poorly respected humanitarian corridors with the bombardment of civilian buildings. Some observers no longer hesitate to speak of ‘war crimes’… but sometimes rely on questionable images and testimonies.
While more and more companies announce every day that they are ending their activities in Russia (Renault ‘suspends’ production in its Lada factories), the European Commission has sent proposals to the Member States in order to support the economy of EU in this context of war.
The Twenty-Seven could thus agree on temporary aid in terms of liquidity for all companies affected by the current crisis, as well as on aid intended to cover the additional costs generated by energy prices.
Yesterday was marked by tensions on the bond compartment following the ECB’s announcement of the acceleration of the reduction of its asset purchases.
‘During her press conference, President Christine Lagarde considered that this decision constituted a logical step in order to reconnect with price stability despite the uncertainties caused by the war’, underlines one at Liberum.
The upward movement in yields spread to the United States, in reaction to the above-expected figures for US inflation in February, which reached records since 1982.
These inflationary pressures again raise fears of an acceleration in the pace of rate hikes by the Fed, whose monetary policy committee is due to meet next week.
This morning, investors learned that German inflation had accelerated further in February, to 5.1% on an annual basis, mainly due to a 22.5% surge in energy prices.
Oil prices are beginning to decline slightly, with Brent stabilizing around $110 and US WTI trading at around $107, well below the peaks reached in the middle of the week.
The yield on our OATs has risen to nearly 0.80% (0.785% this morning), at extreme levels before the outbreak of hostilities in Ukraine (we must go back to 02/16/2022): the yield is stabilizing this afternoon above 0.75%.
The rise in interest rates penalizes Gold, which falls by -1% towards $1.975/Oz, while oil, on the other hand, rises towards $111 in London.
The Euro slipped slightly below $1.1000, -0.2% towards 1.0970.
In the news of French companies, Spie publishes for 2021 a net income group share more than tripled (+217.9%) to 169.1 million euros and an EBITA margin up one point at 6.1%, for production of 6.97 billion euros, up 4.9% (+3.2% in organic terms).
Moody’s announced on Friday that it had assigned L’Oréal its first long-term issuer rating of ‘Aa1’, a rating with a ‘stable’ outlook.
Neoen announces that it has won 92.5 MWp during the last government call for tenders for ground-mounted solar power plants, i.e. seven power projects ranging from 4.7 to 30 MWp, and located in New Aquitaine, Occitanie and the Great East.
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