The Cac 40 continues to rebound, but the dynamic is showing signs of running out of steam


The Paris Stock Exchange is continuing its momentum from the day before while reducing the airfoil in an environment which remains dominated by inflation. The trend nevertheless benefited from the progression of values ​​linked to raw materials against a backdrop of soaring metal prices, while BP published its best annual profit since 2013 at nearly 13 billion dollars, boosted by the surge in gas prices and oil. In London, BP gains 1%, while TotalEnergies wins 2% in Paris.

The market has priced in the prospect of monetary tightening this year, especially as Christine Lagarde has worked to allay fears of too rapid a tightening. During her hearing before the Economic and Monetary Affairs Committee of the European Parliament, the ECB President said on Monday that it will not be necessary to carry out too much tightening as inflation is set to gradually decline. before stabilizing around 2% in the medium term.

Around 12:30 p.m., the Bedroom 40 gained 0.34% to 7,032.92 points in a business volume of 1.27 billion euros. March futures contracts on US indices are hovering around equilibrium.

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On Wall Street, the S&P 500 and the Nasdaq Composite closed down 0.37% and 0.58% respectively on Monday. ” The Nasdaq remains the main driver of US markets and it still looks vulnerable to a relapse to its January lows while below its 200-day moving average. notes Michael Hewson, chief market analyst at CMC Markets. He adds that at the same time, S&P 500 holds above its 200-day average as tug of war continues between ‘bulls’ and ‘bears’ as sentiment swings “.

So far, the earnings season has been broadly positive and the market has digested a surprisingly strong US jobs report. But the priority remains inflation. The highlight of the week therefore remains the January consumer price statistics in the United States, which will be published on Thursday. The market expects a further acceleration in inflation to 7.3% over one year, after 7% in December. The Fed’s near-term strategy will likely hinge on this statistic, and Bank of America analysts believe the central bank could deliver seven quarter-point rate hikes this year.

Bond yields therefore remain under scrutiny, that of the US 10-year hit 1.95% for the first time since December 2019 and some traders see it at 2% or even 3% this year as the Fed faces the the highest inflation rate since 1982. The stock of negative rate loans has also almost dried up. The 10-year German Bund is now trading around 0.2%%, whereas it was still below 0% at the start of February.

BNP Paribas held back by its costs

BNP Paribas yields 1%. The bank published quarterly results that beat expectations, but the performance of the investment and corporate banking (BFI) division disappointed. For Flora Bocahut, of Jefferies, while fourth quarter pre-tax results are in line with expectations, profit before provisions is 11% below consensus due to rising costs. On the other hand, it points out that the amount of the provisions is 50% lower than the consensus and that the new plan should allow a revaluation of the action.

EDF loses 2.4%. The electrician has announced that it is reducing its estimate of nuclear production in France for 2022. For the whole of the current year, it anticipates production of between 295 and 315 terawatt-hours (TWH), against a previous range. from 300 to 330 TWH.

Renault gains 1.3%. The automaker said that Nissan’s results for the October-December period will translate into its fourth quarter accounts by an estimated positive contribution of 124 million euros.

Score increased by 2.1%. The reinsurer reported a 19% increase over one year in reinsurance premiums for Scor Global P&C, its non-life reinsurance division, on the occasion of the annual renewal of contracts carried out on 1 January.

Among analysts’ ratings, Morgan Stanley raised its recommendation on Axa (+2.8%) from “line weight” to “overweight”. Jefferies started the cover of Thales (+ 1.6%) to “keep” to target 89 euros, as well as that ofAirbus (+1.4%) to purchase with a target price of 140 euros.

Finally, Orpea and Korian moved into the lead in the SRD with gains of 5.8% and 3.7% respectively after their recent descent into hell.




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