(CercleFinance.com) – The Paris Stock Exchange (-0.1%) erased all of its gains in the wake of the US indices with a Dow Jones which fell by -1.2%, an S&P500 which fell by -1, 5%, the Nasdaq plunged -2.4%.
The Euro-Stoxx50 is now down -0.5%, as is the AEX.
The CAC40 could once again test the solidity of the support at 6.420: the buyers ‘paid’ this support on Monday, which removed the danger of a relapse towards the annual lows (5.850/5.880).
The markets had this morning welcomed the surprise decision of the Chinese central bank to reduce by one percentage point the reserve requirement rate for deposits in foreign currencies, which will drop from 9% currently to 8% from May 15.
The move aims to strengthen foreign currency liquidity management in financial institutions, the People’s Bank of China said in a statement.
Beijing has also unveiled a series of guidelines aimed at solving bottlenecks, stimulating consumption and dealing with the impact of the resurgence of the Covid-19 epidemic in the country.
Following the presentation of these measures, the Hong Kong Hang Seng index recovered almost 1% the day after a heavy decline (-4%) and the Nikkei of the Tokyo Stock Exchange ended the session with gains of the order of 0.6%.
This easing of the general climate should benefit equities, particularly in the technology sector, as the heavyweights Apple, Alphabet, Amazon, Meta and Microsoft are preparing to publish their results in the coming days.
Another sign of the decline in tensions, the yield of 10-year Treasuries fell back to around 2.8260% after hitting multi-year peaks last week.
Equity markets should also benefit from a new surge on the mergers and acquisitions (M&A) front, which provides some reasons to start buying again.
Twitter announced last night that it has reached an agreement to sell itself to Elon Musk, who will offer a 38% premium to take control of the company in an estimated $44 billion deal.
The objective of the operation is to remove the micro-blogging site from the rating.
As for indicators, investors have just discovered durable goods orders: they rose 0.8% in the United States in March due in particular to an increase in telecommunications equipment and cars, statistics published on Tuesday show. by the Department of Commerce.
This figure, which follows a contraction of 1.7% in February, is however lower than the expectations of economists, who were aiming for a rebound of between 1.1% and 1.3% last month.
The figure for the past month is mainly explained by an increase in orders for computer equipment and electronic products, up 2.6%.
The Commerce Department announces an 8.6% decline in new home sales in the United States in March, ie an annualized CVS volume of 763,000 against 835,000 in February (revised figure).
The median price for US new home sales was $436,700 last month. At 407,000 at the end of March, the stock of new homes ready for sale represented 6.4 months at the current rate of flow.
US consumer confidence deteriorated slightly in April, shows the Conference Board’s monthly survey released on Tuesday.
The confidence index compiled by the employers’ organization fell to 107.3 this month after 107.6 in March, while economists forecast a more marked decline, around 106 points.
The sub-index measuring consumers’ judgment of their current situation fell to 152.6 from 153.8 in March, while that of their expectations rose to 77.2 from 76.7 last month.
The Euro has just sunk to a new annual low – below 1.0670 – and is back in contact with its low of 1.0640/$ at the end of March 2020.
On the interest rate front, after Monday’s strong improvement (-9pts on OATs, -7pts on Bunds), the trend remains positive with -3.5pts on Bunds and -1.5pts base on our OATs at 0 .8100% and 1.3050% respectively.
The T-Bonds are just as dynamic with -6.5Pts towards 2.7600%.
On the side of values in Paris, Safran stands out with +4% and Orpéa symmetrically closes the march with -6.8% towards 32E after the postponement of the publication of its accounts, which never pleases the markets.
Orange announced a turnover increase of 0.7% to 10,582 ME in the 1st quarter benefiting from the growth of Africa & Middle East (+8.7%). ‘The growth of retail services is much higher than the decline of services to operators (Wholesale)’ indicates the group. EBITDAaL was up by 1.0% at 2,620 ME in the 1st quarter.
Faurecia’s sales (-8% and break of the crucial 22E support) were 5.3 billion euros in the 1st quarter of 2022, up 33% in published data and 1.1% in organic data. Sales include the first two months (February and March) of Hella’s consolidation for 1.1 billion euros.
The Lagardère group generated revenue of €1,304 million at March 31, 2022, up +44.0% in reported data and +38.0% like-for-like. Lagardère Publishing generated revenue of €554 million, or +8.7% on a reported basis and +1.4% on a like-for-like basis.
The M6 Group posted consolidated revenue of €322.5 million in the 1st quarter of the 2022 financial year, up +8.7%. Multimedia advertising revenue increased by +5.3%, driven by Television (linear and non-linear). The TV division posted advertising revenue up +7.5% compared to the first three months of 2021.
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