The Paris Stock Exchange catches its breath at the end of a week marked by high volatility in the Cac 40, which nevertheless erased most of its losses on Monday. Still reeling from the Fed’s change of course, the market seems to have priced in the prospect of five rate hikes this year, compared to 3 estimated in December, while looking for encouraging signs in economic indicators and corporate publications.
At 9:45 a.m., the Bedroom 40 lost 0.63% to 6,979.70 points in an exchange business volume of 570 million euros
The trend is towards consolidation despite weight supports such as LVMH and Apple. The share of the world leader in luxury rose by 2.3% after the publication of a turnover and a record net profit for the year 2021, thanks to a sustained demand for its flagship brands. The group says it is confident that this momentum will continue for the current year.
The iPhone maker posted revenue of $123.9 billion in the three months to the end of December, up 11% year on year, beating consensus of $118.7 billion, according to sources. BIES data from Refinitiv. Earnings per share were $2.10, again above analysts’ forecasts ($1.89). Apple shares rise more than 5% in New York forecourt, supporting contracts future on Nasdaq 100 (+0.3%), but the latter have clearly reduced their lead after gaining more than 1%.
Biggest rise in SRD, JCDecaux advance of 10% boosted by the growth of 38% over one year of its adjusted turnover to 955.8 million euros in the fourth quarter, against 883.3 million anticipated by the Bloomberg consensus. Berenberg praised the performance, pointing out that the outdoor communications group overrode containment measures and restrictions. The broker is buying the title to target 28 euros.
Conversely, TotalEnergies lost 1% on profit taking after gaining 3.5% this week. The retreat ofAirbus (-2.3%) also curbs the trend.
Alstom fell 6% while Exane BNP Paribas downgraded the title of the railway equipment supplier from “outperformance” to “neutral”.
Note also that Veolia (-0.5%) holds 95.95% of the capital and voting rights of Suez following the reopening of its takeover bid for the company, said Thursday a notice published by the Autorité des marchés financiers (AMF). Veolia has also confirmed that it would initiate a squeeze-out procedure at the same price as its offer, ie 19.85 euros per Suez share. Suez’s listing is also suspended pending a press release.
New roller coaster session in New York
On Thursday evening, the Dow Jones ended in equilibrium, while the Nasdaq Composite fell 1.4% after gaining as much as 1.7%.
The stronger-than-expected growth of the French economy in the fourth quarter comes at just the right time on this very end of the week. The GDP of the Hexagon has indeed increased by 0.7% over the last three months of 2021, against +0.5% expected, and by 7% over the whole of the year, unheard of since 1969. The market will watch at 10 a.m. for the first estimate of GDP for Germany, the eurozone’s largest economy, in the fourth quarter.
An eye on US consumer spending
Across the Atlantic, it will be the cost of employment in the fourth quarter, as well as household income and expenditure for December, a statistic that incorporates the PCE index of personal consumption expenditure, the most watched measure of inflation. by the Fed. The latter figure could reflect a slowdown in price increases, contrary to what the December inflation figures suggest. Finally, the University of Michigan will unveil its final consumer confidence index for the month of January at 4 p.m.