The Paris Stock Exchange ended below its highs of the day as Wall Street struggled to extend its bullish reversal snatched at the very end of Monday’s session. Investors’ attention has shifted to central bank strategy as the US Federal Reserve begins a two-day meeting of its monetary policy committee.
Investors generally expect a 50 basis point rise in the interest rate. Fed-funds Wednesday night as major central banks attempt to contain inflation. The market is also hoping for some insight into the pace of the next rate hikes, as well as the pace at which the Fed intends to reduce its balance sheet.
In closing, the Bedroom 40 managed to rebound 0.79% to 6,476.18 points, in a business volume of 3.6 billion euros, thus erasing part of its loss of 1.6% the day before, a session marked by a “flash crash” which had brought the flagship index close to 6,400 points. The Cac 40 had fallen 3.44% to the lowest of the session. In New York, the Dow Jones advance of 0.70% and the Nasdaq Composite by 0.39%.
Pfizer gains 2.9%. The group maintained its forecasts for annual vaccines and treatments against Covid. Estee Lauder fell nearly 5% after lowering its target for sales growth and earnings per share amid health restrictions in China and war in Ukraine. In turn, in Paris, L’Oreal fell 1.9%.
BNP Paribas aims for a “solid trajectory” in 2022
BNP Paribas rose 5.1%. The bank reported a 19% increase in its net income in the first quarter after a strong increase in its activity, particularly in the financial markets. Revenues from the corporate and investment banking division jumped 28%. The group reaffirmed the objectives of its strategic plan for 2025 presented at the start of the year and said it was aiming for a “solid trajectory” in 2022. Agricultural credit and Societe Generalewhich will be released later in the week, followed with gains of 2.6% and 3.1%.
TotalEnergies rose by 3.8% in the wake of BP in London. The British oil group benefited from the surge in oil and gas prices in the first quarter, which enabled it to strengthen its share buyback programme.
Alstom gained 5.4%, the biggest rise in the Cac 40. Citi expects the group to generate positive cash flow in the second half of 2022 and over the next few years. The analyst author of the note, which is “purchase” on the value, stresses that the free cash flow of the group had been at the center of the debates and its main handicap last year.