(CercleFinance.com) – The start of the February stock market term is marked by confidence, and absolute records on Wall Street (that helps).
The Paris Stock Exchange gained 0.6, around 7415 points, driven by Alstom (+4.3%), ST-Micro et v (+2.6%), Bnp Paribas (+2%).
The Euro-Stoxx50 also gained +0.7%, towards 4,481, while Amsterdam stood out with +1%.
Wall Street gains +0.4%, with the Dow Jones +0.5% then a 3rd consecutive absolute record broken by the Nasdaq-100 (and a second on the ‘S&P’ and the Nasdaq Composite) which is in increase of +0.3% towards 17,400 (the ‘S&P’, with more than 0.3% gain, flirts with 4,855).
Note this morning a real mini-crash on the Shenzhen stock market with -5.4% and -12.3% cumulative since the start of the year (disappointing activity figures published in China this morning).
The Hang-Seng in Hong Kong (-2.3% this Monday and -12.2% annually) retested its lows at the end of October 2022: it has recorded 13 sessions of decline out of 15 since January 1 and we observe a atmosphere of capitulation which could precede some cheap buyouts.
The week that begins promises to be busy in terms of the economy, culminating in the monetary policy meeting of the European Central Bank (ECB) on Thursday, which will precede that of the Fed, expected next week.
In view of the statements made by its president, Christine Lagarde, last Wednesday in Davis, the Frankfurt-based institute should resist market calls for a rate cut from March.
‘It is very likely that investors will be disappointed,’ warns Christopher Dembik, investment strategy advisor at Pictet AM.
‘In the very short term, it is not in the ECB’s interest to reveal too much about the date of the first rate cut and the pace of the easing process,’ he adds.
Given the questions surrounding the evolution of monetary policy in Europe and the United States, operators will focus on company results, which are expected to increase this week.
Investors are particularly hoping that the publications of many technological heavyweights such as Netflix, Tesla, IBM or Intel will breathe new life into the market.
These announcements will be closely followed as Wall Street set new records Friday evening, still supported by the good shape of stocks linked to semiconductors and AI.
Several European big names are also due to publish their accounts in the coming days, including ASML, LVMH, Nokia, SAP and Stmicroelectronics.
The week will also be punctuated by the PMI activity indices for Europe, expected on Wednesday, then the first estimate of fourth-quarter American growth, which will be released on Thursday.
In the bond compartment, the upward movement in US Treasury bond yields is slowing down a little after a heavy +25Pts last week on all maturities from 2 to 30 years.
The yield on the American ’10 year’ eases by -4.5Pts to 4.104% and its German equivalent, the Bund of the same maturity also clears -5Pts to 2.255% and our OATs -5Pts to 2.7750%.
Brent recovered by +1.3% to $79.2 per barrel in London), while the euro crumbled by 0.1% against the greenback, around $1.0885/E.
Also note the relapse of bitcoin (-2.7%) which pushes the support from 42,000 to $40,550.
La Française des Jeux (FDJ) climbs +5% after publishing a current EBITDA of 675 million euros for the year 2023, i.e. a margin of 25.1% for a turnover of 2.62 billion, up 6.5% (+2.8% on a comparable basis).
Crédit Agricole announces the acquisition of a 7% minority stake in the capital of Worldline, in continuation of the strategic partnership between the two groups, for which the signing of a binding agreement was announced in July 2023.
Finally, ST Dupont announces today the launch of a capital increase with maintenance of preferential subscription rights intended to raise 25 million euros paid up either in cash or by debt offset.
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