The Paris Stock Exchange should continue its slide at the opening, the hoped-for momentum after the expected re-election of Emmanuel Macron as President of the Republic is offset by the fall in Asian markets this morning and Wall Street on Friday. In question, the more restrictive attitude of the Fed in terms of monetary policy and the risk of a slowdown in the world economy against the backdrop of the explosion of Covid-19 cases in China.
Rising overnight, the euro erased its gains following the victory of Emmanuel Macron, who obtained 58.55% of the vote in the second round of the presidential election, according to figures from the Ministry of the Interior. His rival Marine Le Pen won 41.45% of his vote, a figure up from his score of 34% in 2017, while that of Emmanuel Macron is down from the 66% obtained five years earlier. Facing a France divided as never before, the Elysée host’s room for maneuver now depends on the results of the legislative elections next June.
The specter of Jerome Powell haunts the markets
On Wall Street, the S&P 500 and the Nasdaq Composite fell 2.8% and 2.6% respectively on Friday, thus signing their worst session since the beginning of March, still under the influence of the toughening of the speech of the president of the Fed. The market has already priced in four consecutive increases of 50 basis points in the Fed funds rate to stem inflation. A possible summer ECB rate hike is also an option as several members of the Governing Council are calling for a quick end to the asset purchase program ahead of monetary tightening this summer.
Asian markets followed this morning, still weighed down by the risks of an economic slowdown linked to containment measures in several major cities in the face of the explosion of Covid 19 infections. Certain districts of Beijing are also affected by the restriction measures , heightening fears of diminishing demand in the world’s second-largest economy.
The Gafam enter the fray
The week that is starting is the busiest in terms of corporate publications since the start of the quarterly results season in the United States, with in particular the accounts of the “tech” heavyweights, namely Meta Platforms (ex-Facebook). , Alphabet (Google), Apple, Amazon and Microsoft. In France, 16 Cac 40 companies must publish their turnover in the coming days.
The economy will also be in the spotlight, with in particular the Ifo index of the business climate in Germany for the month of April, but also the first estimates of GDP for the first quarter in Europe and the United States, as well as the inflation across the Rhine in April. The evolution of prices will also be monitored across the Atlantic with the PCE index of personal consumption expenditure, the measure of inflation most followed by the Fed.
Vivendi recorded growth of 13.4% in its turnover in the first quarter (+7.9% at constant exchange rates and perimeter), thanks to the dynamism of its subsidiaries Canal+ and Havas. The media and entertainment group did not provide guidance for the current fiscal year.
Technip Energies generated recurring operating income up 17% in the first quarter and a margin of 6.6%, compared to 5.9% a year ago. These figures are higher than expected. For the full year, the company anticipates, excluding activity in Russia, adjusted revenue of between 5 and 5.5 billion euros and an adjusted operating margin of at least 6.5%.
Among analysts’ notes, Deutsche Bank raised its recommendation on Engie from “hold” to “buy”.