The Paris Stock Exchange paused after its rebound the day before, while Wall Street resumed opening thanks to an easing of pressure on the bond markets. The yield on the 10-year bond eased by 4 basis points to 1.8256% after hitting 1.9% on Wednesday, against 1.5% at the start of the year. That of the German Bund of the same maturity relaxes to -0.0380% the day after its first passage into positive territory since May 2019.
The trend is torn between signs of monetary easing in China and the prospect of Fed tightening, while the tone of the minutes of the latest ECB Governing Council meeting unsurprisingly shows divisions between “doves” and “hawks” within the institution. Members of the Governing Council spoke of a risk that inflation would remain above their target, while arguing that the central bank should remain open to both monetary tightening and easing.
At 3:45 p.m., the Bedroom 40 lost 0.22% to 7,156.88 points in a business volume of 1.87 billion euros. In New York, the Dow Joness gains 0.51% and the Nasdaq Composite 1.36%. The latter had entered the correction phase last night after a decline of more than 10% since its November record. Apple gains 1.1% and Microsoft 1.7%.
Prices will drop gradually this year
Eurostat confirmed this morning the 5% increase over one year in consumer prices in December in the euro zone, an unprecedented level, after 4.9% in November. ” Inflation should have peaked at 5% in December, with rising energy prices set to decline sharply this year. But we expect core inflation to stabilize around 2%, pushing the ECB to set the stage for a rate hike next year. says Jack Allen-Reynolds, Senior Europe Economist at Capital Economics.
For Christine Lagarde, prices should stabilize before “ gradually decrease over the year “. Regarding interest rates, we cannot act immediately. If I raise interest rates, this will have an effect within six to nine months, the time it will go down the financing chain. But this is holding back growth “, she said on France Inter.
American Airlines cautious about its turnover
Corporate publications continue in the United States. American Airlines (+0.2%) posted an adjusted loss of $1.42 per share, against an estimated $1.48, for a doubling of its turnover to $9.43 billion. The airline, however, expects a 20% decline in revenue for the current quarter. Component of the Dow Jones, Travelers Cos. (+3.3%) exceeded expectations in terms of profit as billings in the fourth quarter and generated a profit of 5.20 dollars per share, against 3.84 anticipated. The accounts of netflix are expected after closing.
Weekly jobless claims rose by 55,000 to 286,000 in the week to January 15, a three-month high, apparently affected by the impact of Omicron variant contaminations. The Bloomberg consensus was expecting 225,000 new requests. The Philadelphia Fed’s activity index, on the other hand, rose more than expected to 23.2 points in January, against 19 expected and 15.4 in December, supported by the strengthening of demand for goods. A figure greater than zero reflects an expansion in activity.
“The speculation is carried away”
” 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.
Valneva leads the SRD, analysts in action
Up more than 2% at the open, Alstom yields 3.3%. 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 its sales in the second half of the year and aims for a gradual recovery in adjusted operating income over the 2021-2022 financial year.
Valneva jumped 21.3%. 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.
Soitec picks up 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.
Ubisoft wins 3.7% still driven by expectations of concentration in the video game sector after the takeover of Activision Blizzard by Microsoft. Jefferies reiterated its buy recommendation on the stock to aim for 60 euros.
Eramet gains 1.6%. 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 (+1.1%) to “purchase”. The action gained 1.8%. Conversely, ADP lost 1.5% while Exane BNP Paribas downgraded the title of the airport operator from “neutral” to “underperformance”.
Finally, Renault falls 2% as Nissan chief executive tells Bloomberg chip situation remains “ uncertain even if production remains on the road to recovery.