The Cac 40 down slightly, inflation still in sight

The Paris Stock Exchange erased its initial gains, held back by the decline in luxury stocks after their rebound the day before. The market is torn between the persistence of fears about inflation and new signs of Beijing’s desire to ease its monetary policy. Closer to home, the rise in consumer prices was confirmed at 5% over one year in December in the euro zone, an unprecedented level. Christine Lagarde tried to reassure by declaring this morning that prices should stabilize before “ gradually decrease over the year “.

A quarter or a half point?

At 11:05 a.m., the Bedroom 40 lost 0.48% to 7,139.72 points in a business volume of 770 million euros.

There is little doubt that the Fed will act on rates in March, and as the meeting nears [du FOMC]speculation has run rampant this week on a 50 basis point hike when it takes action, recalls Michael Hewson, chief market analyst at CMC Markets. Corn, this seems highly unlikely given that, even now, it continues to strengthen its balance sheet. Additionally, this would be a considerable change in tone from his recent communication on the December meeting. “, he argues.

More nuanced, Ipek Ozkardeskaya, senior analyst at Swissquote, recalls that an increase of 50 basis points in March is integrated into the courses. According to him, this forecast opens the possibility of factoring in even greater tensions on the yield of government bonds, which could weigh on the mood of investors if the market were to remain largely focused on the stocks. rate. For the time being, the yield on the 10-year bond has eased by 3 basis points to 1.8346% after hitting 1.9% on Wednesday, against 1.5% at the very beginning of the year. That of the German Bund of the same maturity relaxes to -0.0210% the day after its first passage into positive territory since May 2019.

China’s central bank bucks the Fed

Despite Wall Street’s pullback yesterday, and the Nasdaq moving into a correction phase after the Nasdaq fell more than 10% from its November record, Asian markets ended a five-session streak on Thursday. decline in a row. The Chinese central bank surprised by lowering its prime one-year loan rate by 10 basis points to 3.7% and that of 5-year loans, which concerns long-term loans including those intended for mortgages, was reduced from 4.65% to 4.6%. For the latter, this is the first easing since 2020. The People’s Bank of China recently indicated that it will undertake new easing measures this year to revive growth.

The market will be watching four US indicators this afternoon: weekly jobless claims, January Philadelphia Fed index, December existing home sales and weekly oil inventories.

Releases on luxury, Valneva leads the SRD

Up more than 2% at the open, Alstom now yields 4.7%. The railway equipment manufacturer reported an 11% increase to 3.92 billion euros in its turnover in proforma data, in line with its forecasts for the first nine months of its 2021-2022 financial year. This figure is however lower than the consensus, which was counting on 4 billion euros. The group nevertheless confirmed its annual and medium-term outlook. It also forecasts a sequential increase in sales in the second half and aims for a gradual recovery in adjusted operating income over the 2021-2022 financial year.

Valneva jumped 20%. The group announced that its inactivated vaccine candidate against Covid-19 showed neutralization of the Omicron variant of the coronavirus responsible for the disease. ” The results of a preliminary study conducted in the laboratory (…) demonstrate that antibodies from serum of individuals vaccinated with three doses of Valneva’s inactivated Covid-19 vaccine candidate, VLA2001, neutralized the Omicron variant “, indicates the laboratory.

Support from the Cac 40 yesterday, luxury stocks are falling again. LVMH loses 0.5%, Kering 1.1% and Hermes 0.7%.

Soitec drops by 14.8%. The group’s executive committee denounced in a letter addressed to the group’s board of directors the “rush” and “opacity” of the process which led to the appointment of Pierre Barnabé as new general manager, report The echoes and The gallery.

Eramet advance of 2.4%. Oddo BHF raised its recommendation on the share of the mining group from “neutral” to “outperformance” and raised its target price from 82 to 120 euros.

Among other analyst notes, Goldman Sachs resumed coverage of Vivendi (+1.6%) to “purchase”. The action gained 1.8%. Conversely, JCDecaux loose 6%. The same broker has started monitoring the outdoor advertising specialist to “sell” to target 21.20 euros.

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