After a drop of more than 2% on Monday, the Paris Stock Exchange is recovering, investors are beginning to hope for a de-escalation in the Ukrainian file. The Russian army has begun the withdrawal of troops engaged in maneuvers near the borders of Ukraine and their return to their bases, the Interfax agency announced this morning, citing the Ministry of Defense. Wall Street also rose in the first half hour, despite the double-than-expected increase in producer prices in the United States last month. They indeed increased by 1% over one month and 9.7% over one year, against respectively +0.5% and 9.1% anticipated by the consensus formed by Bloomberg.
After the surge in consumer prices last week, these figures confirm the persistence of inflationary pressures and reinforce, if need be, the feeling that the Federal Reserve will raise its interest rates next month. Reputedly “hawkish”, James Bullard, the president of the St. Louis Fed, reiterated on Monday that he favors quick action to contain inflation and favors a 100 basis point hike in interest rates. interest by July. However, it seems that his point of view is far from being shared by his FOMC colleagues, many of whom have already expressed their reservations about a 50 basis point hike in March.
The barrel of Brent down sharply
Around 4 p.m., the Bedroom 40 increased by 1.50% to 6,954.75 points in a business volume of 2.4 billion euros. In New York, the Dow Jones gains 0.88% and the Nasdaq Composite 1.80%.
Reflecting the appeasement of the markets, the barrel of Brent from the North Sea fell 3.9% to 92.75 dollars after hitting a seven-year high of 96.16 dollars the day before. The decline in the bond market also reflects a renewed appetite for risky assets. The yield on the 10-year US bond rose back above 2% to 2.05%, against 1.9936% at the close on Monday. That of the German Bund of the same maturity tightened by 3 basis points to 0.3170%.
Scholz-Putin meeting in Moscow
The Ukrainian president has already calmed things down by letting it be understood that he could finally give up his plan to join NATO, which represents a real pledge of goodwill towards Moscow. Volodimir Zelensky, however, caused trouble last night by declaring that a Russian intervention could begin on Wednesday. He then clarified that his remarks were deliberately sarcastic in order to mock the speculations of the international community on the date of an invasion and called on the contrary for more solidarity.
German Chancellor Olaf Sholz is going to Moscow on Tuesday for talks with Vladimir Putin. Russia’s largest European trading partner says it is willing to take major sanctions in the event of an attack on Ukraine.
Michelin faithful to its traditional prudence
Capgemini down 2.6%. The SSII intends to maintain sustained growth in 2022 with profitability which could improve further, after having recorded record results in 2021. For Citi analysts, the group’s forecasts for 2022 are largely in line with forecasts, reflecting the constraints linked to supplies, as well as a ” characteristic conservatism “.
Michelin drop of 3.3%. The tire maker said it expects its profit in 2022 to exceed pre-pandemic levels. While profits are in line and forecasts are encouraging, analysts note that the group anticipates a persistence of supply problems this year, while profitability is considered disappointing in the specialty tire segment.
Engie yields 0.3%. The energy company published sharply higher results for 2021, driven in particular by high energy prices, and said it expects a steady increase in its performance over the next three years. The market, however, considers that the group is cautious for the future.
Pernod Ricard rose 1.9% supported by a rating from Citi, which went from “neutral” to “buy” on the spirits group. The broker deems the stock’s decline since the beginning of the year exaggerated, while medium-term growth forecasts seem attractive.
Renault won 4.6%, supported by signs of calm between Moscow and Kiev while the group owns AvtoVaz, the first Russian car manufacturer. The equipment supplier Valeo advance for its part by 4% while HSBC raised its price target from 25.50 to 28.50 euros while maintaining its recommendation to “hold”.