The Paris Stock Exchange stabilizes as Christine Lagarde’s press conference approaches. The Governing Council of the ECB, as expected, kept its interest rates unchanged, the refi thus remaining at 0%, and confirmed the end of purchases under the PEPP (emergency purchase program in the face of the pandemic) at the end of March. Purchases under the APP (asset purchase program) will be gradually reduced from 40 billion euros monthly in the second quarter to 20 billion in October, as previously announced.
The ECB President is sure to be asked about her recent statements about a gradual reduction in inflation this year as consumer price inflation hit a new high of 5.1% year on year in January in the euro area. For its part, the Bank of England raised its refi rate by a quarter of a point to 0.5%.
Regarding corporate publications, disappointing results and forecasts from Meta put an end to a series of strong publications from Microsoft, Apple and Alphabet (Google). While U.S. Federal Reserve officials have recently been busy downplaying the risk of aggressive monetary tightening in March, they have not ruled out the prospect of four to five rate hikes this year amid soaring prices. .
Meta plunges ahead of the New York Stock Exchange
Around 2 p.m., the Bedroom 40 lost 0.13% to 7,106.13 points in a business volume of 1.24 billion euros. The contracts future March on American indices yield between 0.2% for the Dow Jones and 2.2% for the Nasdaq 100, weighed down by Meta. Wall Street lined up a fourth consecutive session last night.
The action of the parent company of Facebook fell 22% ahead of the New York Stock Exchange. The social media giant reported fourth quarter earnings of $3.67 per share last night after the close, versus 3.84 expected, affected in particular by competition from platforms like TikTok, on which users spend more time. The evolution of Apple’s data protection policy has also caused Meta to lose revenue, which expects revenue of between $27 billion and $29 billion for the current quarter, against more than $30 billion anticipated. , on average, by analysts. It is also the first time in history that the number of daily users has decreased from one quarter to the next.
Publicis confident, Dassault Systèmes disappointed
Publicis gains 1.6%. The advertising group says it expects organic growth of 4% to 5% this year after annual results qualified as records and higher than those before the pandemic. Organic growth reached 10% last year, against 9.1% expected by the market and the group aims for 2022 to maintain the operating margin rate and free cash flow at the same level as in 2021, i.e. approximately 17.5% and 1.4 billion euros respectively. Credit Suisse salutes a “ strong fourth quarter », as well as forecasts for this year.
Dassault Systems down 2.1%. The 3D design software maker said it aims for continued growth in 2022, after seeing its non-IFRS net earnings per share (EPS) climb 26% in 2021 on strong commercial momentum . 2022 revenue is expected to increase organically by 9% to 10%, or 5.3 to 5.35 billion euros, against 5.36 billion expected by the market. Finally, EPS should increase by 3% to 6% this year, reflecting lower margins.
Among other technology stocks, Capgemini loses 2.9%, STMicroelectronics 2.5% and Worldline 3%.
Kering plaice by 0.9%. Jefferies downgraded the title of Gucci’s parent company from “buy” to “hold”.
Biggest increase in the Cac 40, Renault rises 2.2%. AlphaValue/Baader raised its recommendation on the automaker from “lighten” to “buy” and raised its price target from 38.5 to 46.5 euros.
Atos drops 6.1% as a group spokesperson says the cybersecurity division is not for sale. The stock suddenly jumped 10% on Wednesday afternoon following rumors of interest from Thales (+0.5%). The defense electronics group confirmed last night its interest in ” any cybersecurity asset that would be available for sale while indicating that it has no discussions with Atos in this regard “.