(CercleFinance.com) – The Paris stock market ended the week badly (-1.6% to 7,205) after reversing the tide mid-morning: while a 21st week of increases took shape when the CAC40 pranced above 7,360Pts (+0.2% weekly), sellers regained control before lunchtime.
They accelerated their releases in the light of stronger than expected inflation figures, with an ‘overall’ price increase of +5.4% (a sharp rebound compared to December) and ‘Core’ inflation (excluding food and energy) which stands at 4.7% against 4.3% expected after 4.6% in December.
The CAC40 quickly lost up to -160Pts on its daily highs, which pushed the weekly performance into the red (-1%), the annual performance being reduced from 13.5% this morning to just 12% .
And it will be bright red for Wall Street which is down -1.5% (the Dow Jones drops -1.4% but the Nasdaq -2.1%): the US indices will lose -2, 5% to -3.7% (Nasdaq) over this shortened week (4 sessions).
US household income and expenditure figures hold some surprises: household consumption expenditure rebounded by 1.8% in January compared to the previous month.
The Department of Commerce specifies that their incomes, on the other hand, only increased by 0.6%, an increase lower than the market consensus: the fall in the savings rate is accompanied by an increase in indebtedness with an outstanding of ‘credit cards’ which is approaching $1,000 billion (an absolute record).
And to make matters worse – the ‘good news’ turning into bad’, the morale of American households improved more strongly than expected in February, the final results of the monthly survey from the University of Michigan showed on Friday.
Midwest University’s confidence index rose to 67 this month from 64.9 in January, when analysts expected it to be around 66.4, in line with its first estimate.
The sub-index measuring the judgment of households on their current situation went up, to 70.7 in February against 68.4 in January, while that measuring their expectations increased to 64.7 against 62, 7 the previous month.
Joanne Hsu, the author of the report, points out that the improvement in consumer sentiment has been particularly notable among those holding stocks on the stock market, due to a strong rally on Wall Street, while also highlighting an improvement in their prospects. short-term economy.
In France, however, French household confidence was almost stable in February 2023: at 82, the INSEE synthetic indicator lost one point and remained well below its long-term average (100 between January 1987 and December 2022).
Note the rebound in yields on the bond markets with inflation figures above expectations: 10-year Treasuries rebounded from 3.88% to 3.96% (identical score at the start of the week), the highest since November last.
In Europe, there was a sequence of ‘saloon doors’ on our OATs which had relaxed well on Thursday and which saw their yield jump by +7pts to 3.02% (after 3.055% at most for the year around 4 p.m.) , the Bunds take +6.5Pts to 2.54%, the Italian BTPs +10Pts to 4.465%… after having approached 4.500%.
On the foreign exchange market, the dollar continued to rise, recovering another 0.55% against the euro, in the 1.0540 zone (+1% weekly).
In corporate news, Saint-Gobain (+3.8%) announced yesterday evening a turnover of 51,197 million euros, up 15.9% in 2022. The net current result stands at a new record of 3,335 million euros (+18%).
Valeo (-10.6%) also published last night a turnover of 20,037 ME for the 2022 financial year, up 16%. The group share of net income came to 230 ME, up 31% compared to the previous year (175 ME).
For its part, Fnac Darty (-9%) reported 2022 revenue of 7,949 ME, down 1.9% like-for-like compared to 2021. At the same time, the group saw its current operating income will drop from €270m to €230m (i.e. -14.8%), while the consolidated net income, Group share will stand at -€28m in 2022, compared to €160m a year earlier.
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