The high volatility observed on Wall Street has spread to all financial markets and the Paris Stock Exchange is heading towards a hesitant opening if we are to believe the contracts. future on the Cac 40 index. Investors remain under the influence of a probable acceleration of rate hikes by the Fed this year, while looking for encouraging signs in economic indicators. The market now seems to have priced in the prospect of five Fed rate hikes this year, compared to 3 estimated in December.
The trend should benefit from weight supports like LVMH and Apple. The world leader in luxury has published record sales and net profit for the year 2021, thanks to sustained demand for its flagship brands, and expressed confidence in the continuation of this momentum 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 (+1.2%).
Note also that Veolia 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.
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 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. the first estimate of GDP for Germany, the largest economy in the euro zone, 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 December’s inflation figures suggest. Finally, the University of Michigan will unveil its final consumer confidence index for the month of January at 4 p.m.