(CercleFinance.com) – European stock markets are generally stagnating not far from their balances (-0.3% in London, +0.3% in Frankfurt, +0.1% in Paris), in a climate that remains to a wait-and-see attitude as the Easter long weekend approaches.
Recent highs recorded by stock markets around the world have taken already high valuations to strained levels, according to some investment strategists.
‘At the global level, 12-month forecast profits have increased by only 7% compared to their lowest levels, while the price/earnings ratio (PER) has increased by almost 30%’, underlines JPMorgan .
According to the American bank, these high valuations risk condemning the markets to stagnation if they are not accompanied by profit growth. ‘Our concern is that earnings growth will prove disappointing,’ she warns.
However, Goldman Sachs for its part raised its target on the STOXX Europe 600 index by 6% on Monday, against a backdrop of re-acceleration of growth and monetary easing, which still reveals a potential increase of 6% over 12 month.
On the daily statistics front, the economic sentiment index (ESI) recovered in the EU (+0.7 point to 96.2) and in the euro zone (+0.8 point to 96, 3) in March, according to the monthly Brussels survey.
On the value side, H&M jumped 12% in Stockholm, on a stronger than expected increase in the gross margin of the clothing chain in its first quarter, thanks to the improvement of the logistics chain and the good control of its costs.
AstraZeneca gained almost 2% in London, against the backdrop of two approvals obtained by the pharmaceutical laboratory in Japan, for its Truqap in breast cancer and for its Beyfortus in respiratory syncytial virus.
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