The Paris Stock Exchange erased most of its losses the day before, some investors hoping that Western sanctions against Russia will have only a limited impact on the world economy. The market also takes note of information from the Interfax agency according to which Russia is ready to send a delegation at ministerial level to Minsk in order to begin discussions with Ukraine.
Shortly after 4 p.m., the Bedroom 40 increased by 2.98% to 6,715.42 points in a business volume of 3.9 billion euros. The Parisian index now yields 9% compared to its record of January 5, thus theoretically leaving the correction zone crossed on Thursday. In Frankfurt, the Dax gained 2.86%, while in Moscow the Moex rebounded 18.24% after falling more than 33% the previous day. In New York, the Dow Jones takes 0.69% and the Nasdaq Composite yields 0.69%. At the worst of Thursday’s session, the index of major technology and growth stocks had fallen as much as 3.5% before ending with a gain of 3.3%.
Market not impressed by sanctions
” With oil back below $100 a barrel and gas prices retreating from yesterday’s surge, it looks like traders are anticipating limited disruption to Russian exports, whether as a direct result of the invasion or because of the sanctions imposed. This last option seems plausible insofar as the proposed sanctions did not, at the very least, really impress commented Craig Erlam, market analyst at Oanda.
The measures announced by the United States and the European Union are indeed not as strong as feared. The West has targeted banks and public companies more harshly, without going so far as to exclude Moscow from the Swift international banking system. Washington also did not want to directly target Russian gas and oil exports. Ukrainian President Volodymyr Zelensky has called on Westerners to toughen sanctions against Moscow and step up military aid as Russian troops are now reportedly in the outskirts of Kiev.
At the macroeconomic level, the American core PCE index of personal consumption expenditure, the measure of inflation most closely monitored by the Fed, accelerated as expected by 0.3 points to 5.2% over one year in January, i.e. the largest 12-month increase since 1983.
Record results for Saint-Gobain, Vallourec soars
Saint Gobain grew by 6.6% after reporting record operating income in 2021. The group benefited from the dynamism of the construction sector in the United States and Asia and from its exposure to the European renovation market. It also indicates that it has increased its prices in an attempt to offset the impact of inflation.
Engie and Veolia Environment gain respectively 5.4% and 6.7% like the Stoxx 600 of “utilities” which signs the best performance in Europe (+4.9%). More present in renewable energies, the big European names in the sector could represent an alternative to Russian gas.
Valeo drops by 13.3% after forecasts for 2022 “ significantly lower to estimates by RBC Capital analysts, particularly in terms of gross operating surplus margin (Ebitda) and cash flow. The automotive supplier has presented its new “Move Up” strategic plan, which aims in particular to increase its Ebitda margin to around 14.5% by 2025. The group will also sell 500 million euros of non-strategic assets in value in order to deleverage.
Casino fall of 11.9% and falls back to levels not seen for 30 years while the distribution group announced a sharp increase in its net debt in France in 2021.
Vallourec jumped 26%. The manufacturer of seamless tubes presented annual accounts that exceeded expectations, driven by a very good fourth quarter and strong demand in North America. Optimism is in order for 2022, thanks to the American dynamic and the surge in oil prices.