(CercleFinance.com) – The Paris Stock Exchange is regaining some momentum 45 minutes from the close with a gain of +1.1% which is in line with the Euro-Stoxx50 as well as the DAX or the FT-100 in London: investors are swinging between hopes of progress on the Russian-Ukrainian dossier and the monetary tightening mentioned by the FED.
Wall Street has hardly changed since the opening: the trend remains undecided at best, even slightly bearish with a quasi-stable Dow Jones, an S&P500 down -0.4%, a Nasdaq which yields -1%. .but this does not weigh too much on the European indices.
According to the FED, the US economy would be robust enough to withstand rapid monetary tightening: rate hikes will accelerate and the ‘balance sheet’ (outstanding bond instruments) will be reduced by almost $100 billion per month.
The drying up of liquidity is much more dreadful for the markets than a higher cost of money.
On the interest rate front, the upward push never ends with +5Pts on our OATs at 1.265% (i.e. +25Pts over the past week), +2Pts on Bunds at 0.700% and +6Pts on T-Bonds at 2.71% (+32pts weekly).
The Euro logically continues to decline with -0.35% at 1.0840/$ and is approaching its annual low.
The strong tension in rates does not affect the ounce of gold which will end the week on a firm note with +1% towards $1.945/Oz.
On the statistical front, wholesale inventories rose 2.5% in February sequentially in the United States, according to the Commerce Department, after rising 1.2% the previous month.
In the news of values, Sanofi pulls the CAC40 with a gain of +3.8% and a new absolute record at 103.5E.
Crédit Agricole advances by 1% after the announcement of the acquisition of a 9.18% stake in the capital of the Italian bank Banco BPM, with which it is willing to “broaden the scope of strategic partnerships”.
Stellantis climbed for its part by more than 2%, following the sale by the car manufacturer of its remaining 25% stake in the capital of Gefco to the CMA CGM Group, a world leader in transport and logistics.
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