(CercleFinance.com) – Paris (+0.1%) is back in the green as the Ukrainian President announces that he is abandoning all plans to join NATO.
The CAC40 resumed +175Pts on its lows for the day (after an air pocket of -2.3% this morning, around 6,205 points) thanks to a sudden drop of -3% in oil prices (Brent at -7% below $98, WTI -8% below $94.5): the CAC40 rose by +85Pts towards 6,300
However, confusion continues to reign over China’s role in this conflict: the United States assured yesterday that Moscow had requested military and economic aid from China in order to circumvent international sanctions. A revelation that would have provoked the ire of Beijing – which also firmly denies these allegations.
Note a new collapse of -6.5% of the Hong Kong stock market while Shenzhen is completely confined (as well as its port) and Shanghai will be very soon: the first 2 Chinese economic poles are practically at a standstill, exports to the West will be severely impacted.
In economic news, the Fed’s Monetary Policy Committee (FOMC) meets today and on Wednesday, market participants unanimously expect a quarter-point hike in its main benchmark rate. .
“This decision is consistent with inflation which continues to rise and whose peak may not have yet been reached, the figures not yet reflecting the consequences of the invasion of the Russian armed forces in Ukraine”, underlines Franck Dixmier, at Allianz Global Investors.
Wall Street reopened on a solid rise and the S&P500 (+1.5%) or the Nasdaq (+2.3ù) erased their losses from the previous day: investors did not allow themselves to be destabilized by the plunge in manufacturing activity into the New York region in negative territory (figure published at 1:30 p.m.).
The Empire State index deteriorated sharply in March according to the New York Federal Reserve: it fell to -11.8 this month, its lowest level since May 2020, against 3.2 in February, when economists predicted an index around +5.
The new orders sub-index dipped to -11.2 this month, while the employment index fell to 14.5, a level indicating a moderate increase in hiring and longer working hours.
Still in the US, producer prices in the United States (calculated by the Labor Department) increased much less quickly in February compared to the previous month (+0.8%), including an increase of 0.2% excluding food, energy and commercial services, rates below consensus.
Over the past twelve months, producer prices rose by 10% in raw data in February and 6.6% excluding food, energy and commercial services, after annual rates of 10% and 6.8% respectively. in the month of January.
In Europe, seasonally adjusted industrial production remained unchanged in January in the euro area and increased by 0.4% in the EU, compared to December 2021, according to Eurostat estimates.
In December 2021, industrial production had increased by 1.3% in the euro zone and by 1.0% in the EU, data revised from initial estimates which were 1.2% and 0.7% respectively .
Compared to January 2021, industrial production fell by 1.3% in the euro area and increased by 0.4% in the EU last January, after annual increases of 2% and 2.8% respectively in December 2021.
Earlier this morning, investors were able to learn about the evolution of consumer prices in France: they increased by 3.6% in February, after +2.9% in January, according to INSEE, which therefore confirms its provisional estimate at the end of February.
Over one month and in seasonally adjusted data, they increased by 0.7%, after +0.6% in January.
The rise in the inflation rate expressed as an annual rate results from the acceleration in energy prices (+21.1% after +19.9%), and secondarily in services (+2.2% after +2% ), manufactured goods (+2.2% after +0.6%) and food (+2.1% after +1.5%).
Core inflation accelerated in February, to +2.5% over one year, after +1.6% in January. The harmonized consumer price index (HICP) rose by 0.9% over one month, after +0.2% in January; over one year, it increased by 4.2%, after +3.3% the previous month.
On the bond market, the yield on ten-year Treasury bills remains around 2.11% (-1Pt), the highest in three years, in a climate of caution before the meeting of the Federal Reserve.
Yields on government bonds in the euro zone are also showing great firmness, with the German ten-year stabilizing at 0.345% (-3pts) while the French ten-year stands at 0.81% (-2pts).
The Euro recovered towards 1.09750, or +0.3%, gold continued to fall below $1,920/oz.
On the oil markets, crude prices are down sharply, penalized by fears of a slowdown in demand with the confinement of Shenzhen, after the peaks reached last week.
In the news of French values, Hermès (-3%) announces the construction of two new leather goods and saddlery factories, one by 2025, and the other in 2026. Eventually, 500 craftsmen will work in the future workshops located in Charente, in the town of L’Isle-d’Espagnac, and in Gironde, in the town of Loupes.
Alston and LVMH are also down -3.4% and -2%, Ubisoft brings up the rear in the SBF-120 with -6% towards 38E.
Thales announced on Tuesday that it has won a contract to optimize the operational efficiency of Linate and Malpensa airports in Milan. The group will provide SEA, the operator of the two infrastructures, with a digital platform to centralize its operations through an ‘exhaustive’ visualization capacity of the situation.
Finally, Sanofi announces a strategic collaboration with Blackstone Life Sciences under which the funds managed by the latter will invest up to 300 million euros to advance the development of an innovative drug against multiple myeloma.
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