THE TREND
(Boursier.com) — The trend is ultimately quite undecided on the Paris market this morning. The CAC started in the green (+0.17%), but suffered some profit taking shortly before 9:30 am. With three initial bullish sessions in 2023 and a gain of 4.68%, it paused yesterday (-0.22%) and investors are asking more questions this morning!
After the data on inflation in Germany and France, which showed a slowdown in December, investors will take note of the statistics on the subject for the whole of the euro zone. If this slowdown is confirmed after that observed in the figures published Thursday for producer prices in the euro zone in November, this could bolster hopes of a moderation in the pace of the rise in interest rates by the ECB.
In the United States, the most anticipated indicator will obviously be the Labor Department’s monthly report on job creation, wages and the unemployment rate, while the message from the Fed, in the minutes of its last meeting published Wednesday, was variously appreciated, the central bank stressing its desire to slow the pace of interest rate increases while wanting to maintain “flexibility” on their evolution.
After Thursday’s publication of the ADP survey which showed that the private sector had created more jobs than expected in December, traders are now more divided on the probabilities of a rate hike of 25 and 50 points. basis in February, according to the Fedwatch barometer. But a majority remains on a turn of the screw of 25 basis points.
On the stock side, Sodexo suffered profit taking despite a Q1 above expectations, Safran was sought following an analyst’s recommendation.
WALL STREET
Wall Street relapsed on Thursday, the day after the ‘Minutes’ of the Fed which confirmed the determination of the American central bankers to fight against inflation, while the good employment figures published today in the USA came to fuel the thesis of continued monetary tightening, at least in the short term… The S&P 500 drops 1.16% to 3,808 pts, the Dow Jones falls 1.02% to 32,930 pts and the Nasdaq falls 1.47% at 10.305 pts.
ECO AND CURRENCIES
France :
– Household consumption expenditure. (08:45)
UNITED STATES :
– Monthly government report on the employment situation. (2:30 p.m.)
– Orders of durable goods. (4:00 p.m.)
– Industrial controls. (4:00 p.m.)
– ISM US services index. (4:00 p.m.)
Europe:
– German industrial controls. (08:00)
– German retail sales. (08:00)
– British CIPS PMI construction index. (10:30 a.m.)
– Business climate. (11:00)
– Consumer confidence index. (11:00)
– European Economic Confidence Index. (11:00)
– European flash index of consumer prices. (11:00)
– European Index of Confidence in Industry. (11:00)
– European index of confidence in services. (11:00)
The euro/dollar parity reached $1.0510 this morning. A barrel of Brent is trading at $79.22. An ounce of gold is traded at $1,837.
RISING VALUES
Saffron (+2% to 121.2 Euros): offers the head of the CAC40 at the opening of the Paris market. The equipment and engine manufacturer is boosted by a note from Bernstein who raised to ‘outperform’ his advice on the value while raising the cursor from 118 to 142 euros. 2023 should be a solid year for the commercial aerospace and defense sectors, according to the analyst, which makes Safran its first global choice in the industry for the financial year just started.
Plastic Omnium (+1.10% to 15.25 Euros) announces the creation of OP’n Soft, a new activity dedicated to the development of software for its products and services. OP’n Soft will bring together 120 employees from 2023, and more than 250 in 2025, in the service of more electric, connected, autonomous and shared mobility.
Transgene (+2.60% to 1.80 Euros) has received authorization from the National Agency for the Safety of Medicines and Health Products (ANSM) to carry out a Phase I clinical trial of the innovative oncolytic virus TG6050 in France. This new drug candidate will be administered intravenously to patients with advanced non-small cell lung cancer (NSCLC).
FALLING VALUES
Stellantis (-1.50% to 14.12 Euros) could press the brake further to cope with the current environment and continue the electrification of its range. “If we don’t optimize our cost structure, we can’t absorb the additional cost of electrification,” which risks driving up car prices and shrinking the market,” Carlos Tavares told Las Vegas at the Consumer Electronics Show “If the market shrinks, we don’t need as many factories. Some unpopular decisions will have to be made.”
Sodexo (-4% to 86.78 Euros): Consolidated revenue for the first quarter of fiscal year 2023 at Sodexo reached 6.3 billion euros, up +20.2% compared to the fiscal year previous year, including a contribution from acquisitions net of disposals of -1.2%, and a very positive currency effect of +9.2%, reflecting the appreciation of the US dollar and the Brazilian real. Organic growth remains strong at +12.3%. Revenue from On-site Services amounted to 6.1 billion euros, organic growth of +11.9%.
THEY PUBLISHED THEIR TURNOVER/RESULTS…
Osmozis
THE LATEST “RECOS” FROM ANALYSTS…
hexaom : imminent transfer to Euronext Growth.
Engie : issues 2.75 billion euros of green bonds
MARKET INFORMATION
Morgan Stanley adjusts shot from ‘line weight’ to ‘underweight’ on Danone with a target of 48 euros and from ‘overweight’ to ‘line weight’.
Societe Generale takes over the monitoring of Neoen to ‘keep’ by targeting a course of 38.43 euros.
IN SHORT
Focus Entertainment selects Sean Brennan as Managing Director.
Klarsen : Brice Gazeau succeeds Julien Parrou-Duboscq.
Navya : Olivier Le Cornec is appointed Chairman of the Management Board.
vinci : acquisition of the Norwegian company Otera AS.