(CercleFinance.com) – The Paris Stock Exchange ends the session with a loss of 0.5%, at 7,201 pts, penalized by the decline in the US indices: if the Dow Jones increases by 0.4%, the Nasdaq drops 0.7% and the S&P500 retreats by 0.1%.
For their part, the Euro Stoxx50 and the DAX ended the day with almost perfect stability (-0.03% for one, +0.01 for the other), on the eve of the start of the earnings season. companies for the 4th quarter.
Investors thus seem to be playing the card of caution ahead of tomorrow’s quarterly results which will determine whether the high valuations of the equity markets are justified.
The first real test will come tomorrow with the publications of the American banks JPMorgan Chase, Citi and Wells Fargo, which usually kick off the earnings season.
In the meantime, investors have been able to take note of the PPI (producer price index): this is progressing less than expected (+0.2% instead of +0.4% expected after +1% in November) in December in the United States, in the wake of a decline in energy and food costs.
In ‘core’ data, excluding food, energy and commercial services, producer prices posted an increase of 0.4% in December, with energy prices down 3.3% month on month. other and those of food by 0.6%, the ‘core’ PPI nevertheless soared by +8.3% over 1 year.
The Department of Labor indicates that over the whole of 2021, the rise in the PPI reached 9.7% on an unadjusted basis, i.e. the most marked increase in the statistic since its creation in 2010… but the consensus was counting on the 10% bar test.
The number of weekly jobless claims increased by +23,000 to 230,000, and the four-week moving average is also up: it stands at 210,750, up 6,250 from the previous week’s figure.
With the small risk-off sequence taking shape, the bond markets of the Eurozone are relaxing a little: our OATs and the Bunds are posting -3Pts towards 0.24% and -0.086% respectively, the T-Bonds on the other hand are deteriorating from +1pt to 1.735%.
The Dollar continues the slide started yesterday with -0.3% towards 1.1480/E.
Tomorrow’s day will also be rich in economic indicators across the Atlantic, with a host of statistics on the menu including retail sales, import prices, industrial production and consumer confidence in Michigan.
As for values, the auto sector remains well ahead with Renault (+4.5%), Faurecia (+4.2%) and Stellantis (+3.4%).
It is the luxury sector that weighs on the coast with differences of -2% to -3% on average on Kering, LVMH and L’Oréal.
In the news of French companies, TotalEnergies is again at the top of the 13th tranche of the CRE 4 call for tenders, with 194 projects won for a cumulative power of nearly 58 MW, or 20% of the volumes awarded. In total, TotalEnergies won more than 250 MW of projects across all 13 tranches of the CRE 4 ‘solar on buildings’ call for tenders, launched in 2017.
Wendel is today launching a 12-year bond issue for a nominal amount of 300 million euros. “The purpose of this operation is to finance the general needs of the company and will allow Wendel to extend the average maturity of its bond debt,” the group indicates.
Vinci shares rose more than 2.3% on the Paris Stock Exchange, one of the largest increases in the CAC 40, Barclays having raised its recommendation on the value. In a note devoted to the European infrastructure sector, the research office indicates that it has raised its advice on the Vinci title from ‘weighting online’ to ‘overweighting’, with a price target raised from 109 to 113 euros.
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