The Paris Stock Exchange is offering a clear rebound, driven by solid corporate publications, but above all by the rise in line with expectations of 50 basis points in the main interest rate of the Fed. The US central bank also seems to have ruled out the possibility of a 75 basis point hike over the next two months. It also announced the launch of the process of reducing the size of its balance sheet, by more than 9,000 billion dollars, starting in June at the rate of 47.5 billion dollars monthly for three months, before doubling the amount to 95 billions of dollars.
US index futures are retreating in a consolidation movement in the aftermath of the biggest rise in the S&P 500 since May 2020. The productivity of the non-agricultural sector fell by 7.5% in the first quarter, the highest rate since 1947. Wall Street is also waiting tomorrow for the April employment report in the United States, but above all the inflation figures, scheduled for next week. “We continue to believe that ultimately the Fed will make fewer rate hikes than the market expected, but the immediate direction ‘hawkish’ should remain intact given the strength of the labor market and inflationary dynamics “, explains Salman Ahmed, at Fidelity International.
Around 2:45 p.m., the Bedroom 40 increased by 1.79% to 6,510.32 points in a business volume of 1.6 billion euros.
The Bank of England (BoE) raised its repo rate by a quarter point to 1% by a majority of 6 members, against 3 who leaned for a hike of half a point. The BoE expects inflation to top 10% by the end of the year and anticipates a contraction in UK GDP in 2023.
Airbus and Arkema acclaimed
Airbus jumped 7.3%. The aircraft manufacturer maintained its outlook for the 2022 financial year, while its financial results exceeded expectations at the end of March. The group also announced that it is preparing to increase the monthly production rate of the A320 Family to 75 by 2025.
Great appreciated by 3.1%. The electrical equipment manufacturer has confirmed its financial objectives for 2022, after having published accounts that exceeded analysts’ forecasts for the first quarter, posting a net profit of 258.3 million euros, up 13.3%. In its wake, Schneider-Electric garners 2.3%.
ArcelorMittal advance of 2.9%. The steelmaker saw its results improve in the first quarter, thanks in particular to price increases. But the group warned to expect a slight decline in global steel consumption this year.
Stellantis rises 1.6%. The automaker reported a 12% growth in its turnover to 41.5 billion euros in the first quarter. The Reuters consensus was expecting 36.9 billion euros. For the current financial year, the group confirms that it expects a double-digit adjusted operating margin and positive cash flow.
Biggest drop in the Cac 40, Agricultural credit loses 3.5%. The green bank recorded a 47.2% drop in its net profit to 552 million euros in the first quarter after recording in its accounts more than half a billion euros in provisions linked to its exposure to Russia and to Ukraine.
TotalEnergies rose 2.6% in the wake of the rebound in Brent prices from the North Sea while OPEC + agreed on a marginal increase in its production limited to 432,000 barrels per day.
Excluding the flagship index, Arkema garners 5.3%. The specialty chemicals group has raised its forecast for annual gross operating surplus (EBITDA) for its Specialty Materials division, after the publication of robust results for the first quarter, despite being marked by high inflation in raw material prices. and energy.