(CercleFinance.com) – The CAC40 is still consolidating just as modestly (down in the order of -0.9 to -1% since 11 a.m. this morning, around 6,725 Pts), the day after a session that saw the index Parisian flagship climb nearly 3.1% on hopes of exit from the war in Ukraine.
The 1st quarter ends tomorrow and the courses seem ‘held’ in this penultimate session to limit the decline to less than 7% or -8% on the CAC or the E-Stoxx50 (it loses -1.2%) .
On Wall Street, the 3 US indices are moving without direction (their rise had suddenly accelerated without any particular ‘news’ over the last hour): the Dow Jones is stable, the S&P500 is down -0.4%, the Nasdaq lost -0.6%, its gain of the last hour on Tuesday).
“The optimism generated by today’s ceasefire talks between senior Russian and Ukrainian officials was cited as a factor supporting market sentiment,” Wells Fargo said on Tuesday evening.
But the ‘advances’ are considered weak by Moscow (press release published this morning) and things are not going as announced yesterday since military activity has resumed in the suburbs of kyiv (intense bombardments on Chernegiv), and Russia is bringing new troops after having slightly reduced the offensive in western Ukraine ahead of the meeting of Russian and Ukrainian envoys in Istanbul.
The barrel of oil rebounded sharply (+2%) in London and returned to the $114.5 cap, it exceeded $108 on the NYMEX (+1.5%).
Other bad news, the sages who advise the government are halving their 2022 growth forecasts from 3.6% to 1.8% (starting from an initial estimate of +4.6% at the end of 2021): the 1st quarter of 2022 should result in zero growth, or even a recession… and March inflation has just been measured at 7.3%, a record since 1990 (enough to chill the Bundesbank with fear).
In Spain, inflation unveiled this morning stands at 9.8%, the highest since 1985.
Producer prices in Italy exploded at +32.8% on an annual basis.
Inflation should settle at 7% -or more- in Europe this month and remain in the same waters in April.
Unsurprisingly, the ESI indices of economic sentiment in the euro zone this morning are down sharply for the month of April.
Two figures were published in the United States this afternoon: according to ADP, the non-agricultural private sector in the United States generated 455,000 jobs in March, a number broadly in line with the consensus, after the 486,000 creations in February (revised from a initial estimate which was +475,000).
Job creations for the month that is ending were concentrated in services with 377,000 more jobs in this sector (including 161,000 in the leisure and hotel industry), while that of the production of goods generated 79,000.
The latest estimate of US growth in the 4th quarter of 2021 is revised down to 6.9%.
On the interest rate front, the inflation figures in Europe did not go unnoticed and the yield on our OATs rebounded by +4Pts to 1.10%, the Bunds also by +4Pts to 0.681% (the German ‘2-year’ returns positive for the 1st time since 2014), difference of +3pts for Italian construction at 2.162%.
Across the Atlantic, T-Bonds eased by -2.5 Pts (to 2.375% and 2.435% at their highest).
As for Parisian values, Total Energies is surfing on the rise in the barrel and recovers +2%.
St Gobain, on the other hand, is in the red lantern with a decline of -3%, the auto sector is also consolidating after gains of +10 to +17% the previous day (-9% for Faurecia, -7% for Valéo).
The Unibail-Rodamco-Westfield property company (+0.7%) announces the resumption of the payment of a permanent dividend from the 2023 financial year, on the occasion of the presentation of its strategic plan. The property company confirms its objective of an RNRAPA of 8.20-8.40 euros for 2022, and forecasts a return of the net rents of shopping centers in Europe as well as of the group’s EBITDA to their pre-pandemic level during the course of 2023, with full effect in 2024.
The Rémy Cointreau wine and spirits group has announced that it is changing the structure of its executive committee, notably with the creation of a chief transformation officer and a group communication department.
Carrefour (+1% at 19.5E) announces the launch of Carrefour Énergies, an electric charging station service for all of its hypermarkets and Carrefour Market. By 2025, 5,000 charging points will be put into service to facilitate the mobility of its customers.
Thales announces that it has signed a contract with Krauss-Maffei Wegmann. This contract concerns the supply of four PAAGs for the BOXER infantry vehicles of the German armed forces. The PAAG (Panoramic Above Armor Gimbal) is a remote-controlled electronic surveillance system from inside the BOXER armored vehicle.
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