(CercleFinance.com) – The Paris Stock Exchange widens its losses 45 Mn from the close, with a decline of -0.8%, around 6,910, or 100 Pts lost on the highest of the day.
The Euro-Stoxx50 follows the same slope and fell -1.1% (below 4,100) in a context that remains marked by uncertainties around the Ukrainian file and the next rate hike by the Fed.
Wall Street amplifies its decline from -0.7% to -1.3%, the Nasdaq drops -1.5%: in addition to geopolitical concerns linked to the Ukrainian conflict, there are persistent concerns about the prospect of monetary tightening fast in the United States.
Investors – very concerned about the sharp rise in inflation – are also worried about the strength of the main activity indicators, which only reinforce the restrictive bias adopted by the Fed.
The figures that just came out in the United States on Thursday are not encouraging: the growth of economic activity in the northeastern United States slowed more sharply than expected in February, shows the latest business tendency survey ‘Philly Fed ‘ carried out by the Philadelphia Federal Reserve: the index fell from 23 to 16 in January, while economists on average forecast a figure around 20.
The sub-indices relating to the current level of activity, new orders and shipments have all fallen, the Fed argued in its study.
There was also a slowdown in real estate: housing starts contracted by 4.1% in seasonally adjusted data last month in the United States, to 1,638,000 at an annualized rate, a level well below consensus.
The Commerce Department also said the number of US housing permits, believed to herald future housing starts, rose 0.7% to 1,899,000 in January, significantly beating economists’ average estimate.
The number of weekly jobless claims increased the week of February 7 in the United States, standing at 248,000, against 225,000 (revised figure) a week earlier.
The four-week moving average, however, is down slightly, at 243,250, down 10,500 from the revised level of the previous week.
On the geopolitical front, doubts persist over the withdrawal of troops announced by Moscow on Tuesday.
Thus, the Secretary General of NATO, Jens Stoltenberg, affirmed that Moscow had never ceased to pursue its military maneuvers on the borders of Ukraine and underlined not to perceive any sign of de-escalation on the ground.
‘He added that this situation was akin to a ‘new normal’ for Europe, dispelling any hope of a smooth resolution of the crisis”, react this morning the teams of Deutsche Bank.
These still very strong tensions in Eastern Europe contribute to the firmness of oil prices, with a barrel of American light crude oil (WTI) which remains at multi-year highs.
As at the start of the week, sure values such as gold or the yen should be particularly sought after.
The price of gold, a traditional safe haven, is once again trending upwards to move to its highest for almost a year.
The Ounce of gold first erased the resistance of $1,850 and is now attacking those of $1,880, with some success since it is at $1,895.
Bond markets seem to be benefiting from a wave of ‘race to safety’ as the yield on our OATs and Bunds eases by -5Pts towards 0.70% and 0.224% respectively.
In the news for French stocks, the decline in interest rates is weighing on financial stocks which bring up the rear with -3.3% on AXA and Sté Générale, -3.1% on Crédit Agricole.
Kering arrogates nearly 6% after the publication of net income group share up 48% to 3.18 billion euros for the past year, as well as record current operating income, in up 60% to 5.02 billion, a margin of 28.4%.
For its part, Airbus publishes net income of 4.21 billion euros (5.36 euros per share) for the 2021 financial year, compared to a loss of 1.13 billion in 2020 (-1.45 euro per share) and adjusted EBIT almost tripled (+185%) to 4.86 billion.
Schneider Electric publishes net income of 3.2 billion euros for 2021, up 51%, and an adjusted EBITA margin of 17.3%, an organic improvement of 140 basis points, for a figure revenue of 28.9 billion, organic growth of 12.7%.
Finally, Orange has a turnover of 42.5 billion euros last year, which represents an increase of 0.8% over one year, including a growth of 0.5% for the 4th quarter. In 2021, the net income of the consolidated group amounted to 778 million euros, compared to 5.05 billion in 2020, due to a depreciation of 3.7 billion euros related to goodwill in Spain.
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