The Paris Stock Exchange progresses for the third session in a row, supported by good corporate publications as well as the commitment of the Chinese authorities to reinforce their support measures to protect the economy and to ensure an evolution “ stable and healthy » financial markets. While the results season is in the middle of the ford in Europe, nearly 75% of companies in the Old Continent have exceeded expectations in terms of profits, according to Barclays. Moreover, the indicators of the day are perfectly in line with expectations. Inflation held at a record high of 7.5% year on year in April’s first estimate in the euro zone, while GDP growth stood at 0.2% in the first quarter, against + 0.3% three months earlier.
Wall Street is moving for its part towards a decline in opening. The disappointing results of Amazon, which suffered its first loss since 2015 and presented disappointing forecasts, and Apple’s anticipation of tensions on the supply chains are likely to weigh on the technology compartment of the rating. The e-commerce giant fell 10% in market preview and Apple fell 1.1%. On the macroeconomic level, US household income increased by 0.5% last month and spending by 1.1%, against respectively +0.4% and +0.6% expected. The “core” PCE index of personal consumption expenditure, the measure of inflation most closely followed by the Fed, is up 5.2% over one year, where the market was expecting an increase of 5, 3%.
At 2:45 p.m., the Bedroom 40 gained 0.87% to 6,564.99 points in a business volume of 1.4 billion euros. For now, the month of April is losing 1.43%.
X-Fab and Seb make the splits within the SRD
Global financial markets remain subject to high volatility due to the risk of a slowdown in the Chinese economy linked to health constraints, geopolitical tensions and the monetary tightening process initiated by the US Federal Reserve. A 150 basis point hike in the Fed Funds rate is expected by July. The monetary policy council is due to meet next Tuesday and Wednesday.
Biggest increase in the Cac 40, Airbus increased by 2.3% after the extension for two of an agreement with Safran and the German MTU Aero Engines for the supply of engines which should enable it to raise its production.
Saint Gobain earns 1.5%. The building materials specialist confirmed that it expects further growth in its operating income in 2022, after seeing its growth accelerate in the first quarter amid a sustained increase in the prices of its products.
Accor rises 2.1%. The hotel group is optimistic about the recovery of its activity as its revenues jumped in the first quarter, thanks to the reopening of borders and the rebound in demand from its national clientele.
Remy Cointreau appreciated by 1.8%. The spirits group expressed confidence for its 2022-2023 financial year, which will end at the end of March 2023, and confirmed its financial objectives for the past 2021-2022 financial year, during which its turnover appreciated by 30%.
Plastic Omnium rises 2.9%. The automotive supplier has announced a project to acquire Varroc Lighting Systems (VLS), a supplier of automotive lighting systems, for an enterprise value of 600 million euros. Its competitors Faurecia and Valeo take 2% and 2.5% respectively.
Biggest rise in SRD, X-Fab Silicon Foundries jumped 9.6%. The founder, which posted 15% growth in quarterly sales, says it can reach $1 billion in revenue by 2024, two years ahead of its previous estimate. Deutsche Bank has also raised its recommendation on the title from “hold” to “buy”.
At last, Seb down 4.5%. The manufacturer of small household appliances generated growth and operating profit from activities at the end of March below analysts’ expectations. The health crisis in China could weigh on the performance of the second quarter.