(CercleFinance.com) – The Paris Stock Exchange (-0.3%) largely limits the breakage (just like the Euro-Stoxx50, with the same spread), given the deterioration of the interest rate markets and especially the fall of -1 .4 to -1.5% in US indices after a 3-day weekend (remarkable resilience).
The CAC is gravitating towards 7,320 points, based on encouraging European ‘PMI’, without taking into account rates that have returned to the zenith since the end of December 2022 (the OAT is back above 3.00%).
Thus, the composite flash PMI index of overall activity in France, calculated by S&P Global, recovered from 49.1 in January to 51.6: the index is moving into positive territory for the first time since October 2022. and recorded its best score since last July.
Economic developments, however, diverged significantly between sectors: manufacturers reported a drop in production for a ninth consecutive month, while service providers saw their first increase in activity for four months.
Moreover, according to its flash estimate, the S&P Global composite PMI index of activity in the euro zone recovered for a fourth consecutive month in February, to 52.3 against 50.3 in January, thus signaling the strongest private sector growth since May 2022.
The day was also marked by the publication of the index measuring the morale of investors in Germany, compiled by the institute of economic studies ZEW.
The OECD’s gross domestic product (GDP) rose 0.3% quarter-on-quarter in the fourth quarter of 2022, compared to growth of 0.4% in the previous quarter, according to preliminary estimates.
OECD quarterly growth rates have remained weak throughout 2022 amid high inflation and rising interest rates. In the G7, quarter-on-quarter GDP growth also slowed slightly in Q4 2022, to 0.4% from 0.5% in Q3 2022.
This result reflects a contrasting situation among the G7 countries. On the one hand, growth turned negative in Germany and Italy (minus 0.2% and minus 0.1% respectively) and slowed to 0.4% in Canada and 0.7% in the United States.
In contrast, GDP rose 0.2% in Japan after contracting 0.3% in the third quarter of 2022, and remained stable in the United Kingdom after contracting 0.2% in the previous quarter.
The first estimates of annual GDP growth indicate that GDP continued to grow in the OECD area in 2022 (2.9%), but at a more moderate pace than in 2021 (5.7%) when economies recover. were recovering from the immediate impact of the Covid-19 pandemic.
Finally, the American private sector managed to stabilize in February, according to S&P Global, whose composite PMI index stood at 50.2 in flash estimate, an eight-month high, compared to 46.8 for the last month.
On the bond front, this session is going badly, the figures of the day being considered stronger than expected: the T-Bonds tend by +10.5Pts to 3.932% and the ‘1 year’ returns to the ‘6 months’ with a jump of +5 Pts to 5.05% (compared to 5.034% for the 6 month), i.e. +112 Pts of ‘spread’ compared to the ‘230 years’ (+7.5 Pts to 3.9320%, at parity with the ‘ 10 years’).
In Europe, our OATs jumped by +10Pts which propelled them beyond 3.00%, to 3.020%, the Bunds tightened by +7.5Pts to 2.535%, the Italian BTPs suddenly shifted by +17Pts to 4 .47%.
The Dollar recovered 0.35% against the Euro towards 1.0630, the Dollar Index remained unchanged at 103.9E.
In corporate news, payment solutions group Worldline reports normalized EPS up 23.4% to 1.94 euros for 2022, as well as free cash flow of 520 million euros, or 45 .9% conversion of an OMDA (gross operating surplus) of 1.13 billion.
Capgemini reveals normalized EPS up 25% to 11.52 euros for the past year, as well as organic free cash flow generation of 1.85 billion euros, i.e. an amount greater than 1, 7 billion, in line with the target.
Finally, Engie publishes net recurring income (RNR) group share (continuing operations) up 78.4% to 5.2 billion euros for 2022, as well as EBIT up 47.2% to nine billion and an EBITDA up 29.8% to 13.7 billion.
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
