THE TREND
(Boursier.com) — The CAC40, which fell 2% in the morning to 7,167 points, finally ended down 1.2% to 7,220 points in an active market. Investors were taken cold by the difficulties of the American bank Silicon Valley Bank, a subsidiary of SVB Financial Group, specializing in the financing of start-ups, which launched in disaster a capital increase to face a liquidity risk. , fueling the specter of serious tensions on the banking system… Wall Street bears the brunt of this and the Paris Stock Exchange in its wake, therefore, with a sharply declining financial sector.
In terms of economic indicators, job creations have remained very strong in the USA, but the slowdown in wages is a positive element from the point of view of the markets, which are monitoring any signal of potential easing of inflation… These figures have however somewhat overshadowed today by the SVB affair.
Janet Yellen, US Secretary of the Treasury, said this afternoon that the US administration was closely monitoring “a few banks”, following the problems encountered by SVB-Financial. “When banks experience financial losses, that is and should be cause for concern,” Yellen added, quoted by a New York Times reporter. On a more positive note, quoted this time by Business Insider, Yellen also states that there is a chance that the US economy will avoid recession, while inflation is slowing…
ECO AND CURRENCIES
The US employment figures came out very solid once again in February. Non-farm job creations came in at 311,000, versus 215,000 from the FactSet consensus and 504,000 from the revised reading from the prior month. The unemployment rate stood at 3.6%, against 3.4% consensus and 3.4% a month earlier. Notable job gains were recorded in leisure and hospitality, retail, government segment and healthcare. Employment fell in information and in transportation and warehousing. Job creation in the non-agricultural private sector was 265,000, against the consensus 228,000. In contrast, the manufacturing sector lost 4,000 jobs. The average hourly wage for the month of February increased by 0.2% compared to the previous month and by 4.6% year-on-year, against respectively +0.4% and +4.7% of consensus, which constitutes a relatively good news on the inflation front. The labor force participation rate stood at 62.5% in February, against 62.4% consensus.
After the latest events in the financial sector, markets, which had been eyeing a strong move of 50 bps from the Fed this month due to Powell’s speech, more reasonably reverted to a forecast of 25 bps, which would bring the range between 4.75 and 5% on the ‘fed funds’ (probability of 57% according to the real-time FedWatch barometer). The probability attributed to the 50 bp hypothesis is now only 43%. The euro rises tonight on 1.0660/$. Oil returns to $83 a barrel of Brent.
RISING VALUES
STEF gains 5% to 109 euros. The transport and logistics group for temperature-controlled food products generated current operating income of 201.9 ME in 2022, up 13% for a turnover increased by 22% to 4.26 billion euros. . Inflationary pressures and the significant increase in energy costs barely impact the current operating margin rate, which stands at 4.7% against 5.1% in 2021. Operating profit of 203.5 ME (+32%) benefited from a significant contribution from the acquired companies (+13 ME) and several disposals of assets (real estate and vehicles) for an amount of 12 ME. STEF specifies that these positive contributions make it possible to mitigate the rise in electricity costs, which increased by 75% over the period. Net income group share reached 146.4 ME (+33%).
Teract rose by 3.5% after the announcements with Casino, followed by Maisons du Monde, which recovered a little.
Line data : +3% with Eurofins
ADP Group : +2% with Waga
Showroomprivé : +1.5% followed by Carrefour,
Dried : +1% with Interparfums and SMCP
FALLING VALUES
Verimatrix corrects by 11%, while the group recorded 2022 revenue of $61 million, down 15% from 2021. Verimatrix recorded an operating loss of $11.5 million in 2022 , compared to an operating income of $8 million in 2021. In total, after taking into account financial income and tax expense, the net loss from continuing operations amounted to $17.6 million, against a profit of $3.7 million in 2021.
Euroapi continues to fall (-8%) after its warning.
Casino (-5%) published an annual current operating profit down 12.1% at constant exchange rates, penalized by its activities in France and in e-commerce. Current operating income thus stands at 1.12 billion euros in 2022, compared to 1.19 billion a year earlier. The tricolor group also announced that no dividend would be proposed for 2022 at its next general meeting.
Lhyfe sells 5% with Moncey, Elior, Nacon, Elior and Vantiva
The difficulties of Silicon Valley Bank therefore impact the European banking sector. Biggest drop in the CAC40, Societe Generale loses 4.5%. BNP Paribas And Agricultural credit fell by 3.5% and 2.5%.
score : -4.5% with Aramis, Nexans
Great loses 3.7% and Schneider 3.3%. JP Morgan went back from ‘overweight’ to ‘neutral’ on Legrand, targeting a price of 93 euros and resumed following Schneider at ‘overweight’, targeting 185 euros.
Eurazeo (-3.5%) followed by Wendel, ALD
Lagardere : -3% with Savencia, DBV, Orpea, Sword
Rexel : -2.5% with BioMerieux, Atos, Worldline, Vivendi, Air France KLM
Michelin fell 1.7%, while the tire group will host a digital CMD on Monday March 13 (“Strategy Progress”) to take stock of the progress of their roadmap for 2030 (“Michelin in Motion” ).