CAC410: returns to 10% annual increase, WallStreet positive

( – The Paris Stock Exchange is showing remarkable stability with tiny variations on either side of the 7,100.
The bar of 10% increase since January 1 was crossed several times during the session, when the CAC rose above 7,110.
Same constant for the CAC40 ‘GR’ which posted +0.8% and recrossed 20,910Pts, 0.5% from its absolute record of 05/01/2022.

Wall Street is on the rise, with disparate performances since the Dow Jones is content with +0.1%, the S&P500 takes 0.4%, but the Nasdaq shows +1% in the wake of Tesla (+9%).

The CAC is driven by the +7% rise of STMicro after the announcement of a 2022 net result almost doubled compared to 2021 (see below).

There was a flood of ‘stats’ in the United States on Thursday, rather well received by the markets.
The 1st estimate of US growth in the fourth quarter amounts to 2.9%, right in the middle of the consensus of 2.6% to 3.2% (the GDP had climbed by +3.2% in the 3rd quarter).
Sales of new homes rebounded by +2.3% in December 2022, reaching an annualized and seasonally adjusted volume of 616,000, according to the Commerce Department.
The previous month, sales had increased by 0.7% (revised figure compared to the +5.8% of the initial estimate).
At 461,000, the stock of new homes ready for sale at the end of December represented a supply of nine months at the current rate of flow.

Also according to the Commerce Department, durable goods orders jumped 5.6% last month, after falling 1.7% in November (against +2.5% expected).
Orders for civil capital goods excluding aeronautics, a benchmark closely followed for business investment projects, however fell by 0.1% in December.
Orders for transport equipment, on the other hand, rose sharply (+16.7%) in December to sign their fourth increase in the last five months.
Claims for unemployment benefits in the United States fell by another 6,000 during the week of January 16, settling at 186,000 against 192,000 (figure revised from 190,000) the previous week, according to the Labor Department.

The four-week moving average – seen as a better indicator of the underlying trend in the jobs market – shows a decline from 9250 week-on-week to 197,500, again, this is close to the records of 2019.

Finally, the number of people regularly receiving benefits increased by 20,000 to reach 1,675,000 during the week of January 9, the last week available for this statistic.

The bond markets, which were stable this morning, tightened slightly: T-Bonds posted +3pts to 3.496%.
The deterioration is clearer on our OATs (+6pts 2.665%) and Bunds (+5pts 2.2080%).

With robust US GDP, the barrel of oil ‘WTI’ recovered 1.4% to $81.45, the same for ‘Brent’ at $87.5.

The earnings season, so far disappointing, should also continue to drive the trend, as investors become aware of the impact of the global economic slowdown on corporate accounts.

Tesla (+9%) last night reported better-than-expected results for the fourth quarter, but the decline in its profit margins reflects an increasingly difficult market environment.

Groups like Visa, LVMH, Mastercard, SAP, Intel, STMicroelectronics or Nokia must also reveal their performance today.

In corporate news, STMicroelectronics reported net income nearly doubled from 2021 to $3.96 billion and operating margin up 19% to 27.5 % year over year. The turnover of the Franco-Italian semiconductor manufacturer increased by 26.4% to 16.13 billion dollars.

Getlink unveils a turnover of nearly 1.61 billion euros in 2022, an increase of 107% at constant exchange rates compared to 2021, ‘defining a new historic high since the creation of the group’.

SES-imagotag posted 2022 revenue growth of 46.4% to 619.1 million euros, the highest annual sales level in the history of the electronic labeling specialist from gondolas for distribution.

Finally, Air Liquide announced on Thursday that it had signed a ‘record’ number of 52 new contracts in on-site gas production in industrial merchants in 2022. The number of long-term contracts linked to on-site installations signed each year by Air Liquide has thus doubled between 2015 and 2022.

Copyright © 2023 All rights reserved.

Did you like this article ? Share it with your friends with the buttons below.





Source link -85