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Paris Stock Exchange: And Apple and LVMH arose…


US equity indices are still struggling to recover in an upward direction, while their European counterparts are showing much better resilience. This is a bit of the lesson of the last few days after a generally complicated start to the year for all Western stock exchanges. The balance sheet at the January/February hinge is not spectacular: since 1er January, the Nasdaq 100 lost 13%, the S&P500 8.7%, the Swiss SMI 6% and the French CAC40 and German DAX indices just over 2%. Asia is not spared as evidenced by Tokyo’s -6.2%, or even MSCI China’s -1%.

Yesterday, Wall Street again lost ground, in particular the Nasdaq 100, which will have to whip today if it wants to catch up with its weekly deficit of 3%. The previous week, it had sunk, I remind you, by 7.5%. I often write about the Nasdaq because it is the key marker of the American stock market, and its stars also weigh heavily in the broader S&P500 index. And as such, the previous day’s session was very instructive. The technology index returned 1.2%, with two big leaders in this contraction, Tesla (which sank 11.5% after announcing that it was not immune to component shortages) and Nvidia (-3.6% because the fall 2021 star no longer looks like a must have). I can add the whole semiconductor compartment, in particular Intel and Advanced Micro Devices, which fell by 7% but which weigh less heavily than the two aforementioned players.

On the other hand, the index aristocrats were not swept away this time. Microsoft gained ground and Apple and Google finished almost evenly. The results of the owner of Windows have reassured, as did those of Apple last night post-closing. If we extend to Europe, the figures for sectoral locomotives are also good. We have again seen LVMH pull out all the stops in the evening. And their predictions are solid. It is logical that investors are heading back towards these reassuring files by exiting those whose valuations seem less reasonable, at a time when the available liquidity will gradually reduce with the end of the support policy of the American central bank. . However, the ongoing arbitrations between compartments of the same sector are sometimes difficult to follow, at least as far as I am concerned. I imagine that we must keep in mind this beautiful phrase from an excellent connoisseur of the financial workings, when he recalls “the market is rational, but investors play different games and those games seem irrational to those playing another game“. I’ll let you ponder that.

You have realized this, the Fed, which did not reassure us so much on Wednesday for its back-to-school meeting. Economists generally took note of a rather lenient written communication from the institution, but in a more conservative and strict tone from its president Jerome Powell during the press conference that followed. The market bias tells him that the central bank will be a little more aggressive than expected. “They know they are late, and in response they announce that they will go ahead and do what is necessary while having plenty of leeway to act aggressively. But not for six weeks on rates and 18 weeks before starting to reduce the balance sheet“Summarizes Steven Blitz, of TS Lombard. Enough to give investors a little more time to prepare.

Meanwhile, the results of companies continue, as you will have understood, to offer some guarantees. After the modern stars yesterday, the return of the old economy to close the week, with Chevron, Caterpillar, Givaudan or Stora Enso.

European leading indicators are slightly bullish this morning, while Wall Street futures are trading positive at the time of writing. A slight easing visible in the VIX volatility index which fell for the first time in almost two weeks. But he still remains high up for the season, a sign that the nervousness is still very much present. Tokyo ended three straight sessions of declines with a 2% rebound this morning, which also appears to have inspired Sydney. In Hong Kong, on the other hand, it is more complicated with a relapse after the stabilization of the day before.

Economic highlights of the day

The American consumer is in the spotlight with US household income and spending for December (2:30 p.m.) and the University of Michigan consumer confidence index for January (4:00 p.m.). This morning, France announced quarterly growth of 0.7% in Q4, higher than expected (0.4%), bringing GDP growth to 5.4% over one year.

The euro’s bout of weakness is confirmed at 1.1151 USD. The ounce of gold returns below the threshold of 1800 USD. Oil is consolidating at a high level, with Brent at $89.75 and WTI at $87.10. The yield on US debt is down to 1.82% over 10 years. Bitcoin is stabilizing around $37,300.

The main changes in recommendations

  • ABB: SEB goes from buying to holding, aiming for CHF 34.23.
  • Accor: HSBC goes from keeping to buying, targeting 39 EUR.
  • Alstom: Exane BNP Paribas goes from outperformance to neutral, targeting EUR 33.50.
  • Almirall: Exane BNP Paribas goes from outperformance to neutral by targeting EUR 11.
  • Associated British Foods: Goldman Sachs goes from neutral to sell, targeting 2060 GBp.
  • AXA: Jefferies remains long with a price target raised from 29 to 30.50 EUR.
  • Daimler Truck: Morgan Stanley starts overweight tracking by targeting EUR 38.
  • Interroll: Credit Suisse goes from underperformance to neutral by targeting 3760 CHF.
  • Jungheinrich: HSBC goes from holding to buying, targeting EUR 54.
  • Kion: Baader Helvea goes from accumulating to buying aiming for 108 EUR.
  • Lonza: Jefferies remains long with a price target reduced from 830 to 770 CHF.
  • LVMH: Jefferies is still buying with a price target raised from 830 to 850 EUR.
  • Orpea: Jefferies goes from buying to keeping, targeting EUR 43.
  • Palfinger: Ehrenberg remains long with a price target reduced from 43 to 37 EUR.
  • Polymetal: Ehrenberg remains long with a price target reduced from 2200 to 1500 GBp.
  • Neste Oyj: Societe Generale goes from sell to hold, aiming for EUR 40.
  • SAP: Jefferies remains long with a price target reduced from 154 to 130 EUR.
  • Schibsted: Berenberg starts the follow-up to keep aiming for NOK 270.
  • SGS: JP Morgan reduces its target price from 3150 to 3000 CHF.
  • Vinci: Stifel goes from keeping to buying, aiming for 109 EUR.

In France

Important (and less important) announcements

  • LVMH published record results in 2021.
  • Orange should appoint today Christel Heydemann to succeed Stéphane Richard at the controls.
  • Veolia holds 95.95% of the capital of Suez after the reopening of its takeover bid.
  • Stellantis wants to repay a €6.3 billion loan in advance.
  • The Court of Auditors is shooting Sopra Steria at the Ministry of Justice, according to La LettreA.
  • Spie completes the acquisition of Worksphere.
  • Gaztransport & Technigaz chosen by Hyundai Samho Heavy Industries to equip six LNG-powered container ships.
  • Adeunis is innovating with its partner Intent Technologies by developing a unique data decoding solution.
  • Energisme shareholders convert their current account advances into capital.
  • CNIM sells its subsidiary LAB.
  • Holmarcom takes a stake in Les Agences de Papa.
  • Wavestone, Derichebourg, Stef, Aramis, JCDecaux, Alten, Cegedim, Mare Nostrum, Latécoère, Orapi, Oncodesign, LDLCAteme, Manitou, Fiducial Real Estate, Cibox, Lucibel, Poulaillon, Kerlink, SES-imagotag, Enensys, Samse, Mersen, Fermentalg, Witbe, Wedia, Bio-UV, Kaufman & Broad, I2S, Signals Girod, Guillemot, have published their accounts.

In the world

Important announcements (and others)

  • Apple rebounded 5% off session after its quarterly.
  • The results of the world’s number one battery company, Contemporary Amperex Technology, are soaring.
  • Robinhood sank 13% off session after disappointing quarterly results.
  • Toyota sold 10.5 million vehicles in 2021, remaining the world’s number one carmaker.
  • UniCredit generates a net profit of €1.54 billion in 2021.
  • Google will invest up to $1 billion in the Indian company Bharti Airtel.
  • The Home Depot appoints Ted Decker as CEO.
  • Tencent could buy out DouYu’s minority interests.
  • Farfetch enters the beauty business with the acquisition of Violet Grey.
  • Samsung Biologics will buy Biogen’s stake in Samsung Bioepis for $2.3 billion.
  • Sharp increase in sales of Salvatore Ferragamo in 2021.
  • The FCC kicks China Unicom out of the United States.
  • Hopson Development is reimbursing him after PwC resigns as auditor.
  • Main results publications : Chevron, Caterpillar, Charter Communication, KDDI, SK Hynix, Givaudan, Phillips 66, Hennes & Mauritz, Telia, Zozo… Find the full agenda of the day here.

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