(CercleFinance.com) – The Paris stock exchange offered itself a candle-like rise around 4 p.m., the CAC40 rising from 7,065 to 7,105, easily crossing the 9% mark in gains this year, despite the sharp drop in Wall Street (-0 .8% for the Dow Jones which fell below 34,000, -0.2% for the S&P500).
The Euro-Stoxx50 which gleans 0.3% to 4,170 (after 4,193 at its highest) flirts with +10% in 12 sessions, pulled towards 4,160 by the title L’Oréal (+ 2.8%).
Investors face a busy day on the front of economic indicators.
Manufacturing activity is contracting sharply in the New York area, according to companies responding to the local Fed’s Empire State survey in January, with the overall general business conditions index falling 22 points to -32, 9.
Increases in input prices are slowing considerably and those in selling prices are also moderating. Looking ahead, companies expect little improvement in the economy over the next six months.
After a first burst of results on Friday, the big American banks remain in the spotlight today with the accounts of Goldman Sachs and Morgan Stanley: the results are also mixed and Goldman drops -6% (fall of -69% of its profits) when Morgan Stanley jumped by +4% (profits fell by -41%, less than expected, while trading activity climbed by +26%, driven by the rise in the markets).
This morning, the ZEW index of investor sentiment in Germany recovered by 40.2 Pts and is back in positive territory – for the first time since February 2022 – to stand at +16.9 in January.
Overnight, investors learned that China’s GDP only grew by 3% in 2022 (more than 40 years) due to the resurgence of the epidemic in the country. The population is decreasing for the first time in 601 years with just over 9.5 million births but 10 million deaths.
On the bond, it’s a good session with a drop of -11Pts in the yield of our OATs to 2.53%, -11.5Pts of that of the Bunds to 2.8% and the Italian BTPs show -13, 5pts at 3.88%.
The dominant discourse is now that Europe will escape a recession and that inflation will quickly calm down, allowing the ECB to be less aggressive on rates: this is the 100% ‘Goldilocks’ or ‘ pink glasses.
The trend is far from being as positive on Wall Street where the T-Bond 2033 erases only one point at 3.5020%.
In company news, Technip Energies announces that it has been awarded, in joint venture with Samsung Engineering and Tecnimont, a pre-construction services (PCSA) contract for the onshore infrastructure of the Hail & Ghasha gas development project in Abu Dhabi, United Arab Emirates.
Danone announces a global action plan to reduce methane emissions from its fresh milk supply chain by 30% in absolute terms by 2030, the equivalent of 1.2 million tonnes of CO2 at this horizon.
Finally, Thales Alenia Space has signed a contract with Appworks to provide Thailand with the MEOLUT Next solution for locating distress signals.
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