THE TREND
(Boursier.com) — The CAC40 returned to equilibrium at the end of the morning around 7,030 points after rising to 7,065 points at the start of the session. The Parisian index remains on 13 sessions of increase during the first 16 of 2023 with a cumulative gain of almost 9%.
Fears of an economic recession and a prolonged monetary tightening by central banks after several declarations deemed restrictive by central bankers, are taking a back seat for the time being. The less severe global economic slowdown than expected and the peak that inflation seems to have already passed should allow central banks, in particular the Federal Reserve, to slow down the pace of their monetary tightening. This is at least the wish of investors!
The latest flash PMI data shows a slight pick-up in January activity growth in the Eurozone, ending six consecutive months of contraction in the region. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, commented on the latest survey figures: “The chances of the Eurozone escaping a recession appear to be becoming clearer, with the latest flash PMI data highlighting a stabilization in the region’s economy in January.
RISING VALUES
* The strongest rise in the CAC40 is due to Engie (+2% to 12.86 euros) which has still lost 4% since the start of the year.
* The luxury sector remains surrounded. LVMH is up slightly by 0.3% to 790 euros. Cowen and Company raised its target from 780 to 900 euros (‘outperform’).
FALLING VALUES
* Dassault Aviation is under pressure on Tuesday with a title that yields 3.3% to 160.3 euros. The aerospace group, which remained on an impressive eight-session bull run, fell as much as 5% at the open before paring its losses. In addition to logical profit taking after such a sequence, the selling flow on the file is fueled by a note from Exane BNP Paribas which downgraded the value to ‘neutral’ with a reduced target of 183 to 171 euros. Despite everything, the market remains mostly positive on Dassault Aviation since, according to the ‘Bloomberg’ consensus, 9 analysts are ‘buy’ and 4 are ‘neutral’. The average 12-month target is set at 182.33 euros.
* Technip Energies (-1.9% below 17 euros), as part of its long-term agreement with Aramco, won a contract for the modernization of sulfur recovery infrastructure at Aramco’s refinery in Riyadh. This contract concerns the delivery of three new flue gas treatment units, improving the performance of the three existing sulfur recovery units (SRU) in order to meet the stricter regulations on sulfur dioxide emissions, with greater efficiency. recovery greater than 99.9%. The existing sulfur recovery units at the Riyadh refinery were designed and built by Technip Energies in the early 2000s.
* BigBen Interactive fell 2.2% to 6.8 euros the day after its quarterly point. The company unveiled, for its third quarter, a turnover down 12.8% to 79.5 million euros. Over 9 months, it stands at 218.1 ME (+1.2%).
* Air France-KLM lost 0.6% to 1.61 euros. Deutsche Bank upgraded the airline from 1.45 to 1.75 euro (‘hold’).