The Paris Stock Exchange has erased its losses from the previous day and Wall Street is moving in dispersed order, the Nasdaq being weighed down by the 30% drop in Netflix from the opening, after the announcement of the loss of 200,000 subscribers in the first quarter, unheard of since 2011. The good quarterly publications of components of the Dow Jones like IBM and Procter & Gamble, or of the Cac 40 like Danone, Teleperformance and L’Oréal, nevertheless give hope that corporate profits will be strong enough to withstand the slowdown of the economy, which is also reflected in the recovery of the bond markets.
The day before, investors had suffered the blow of the downward revision of the IMF forecasts for world GDP this year due to the surge in commodity prices linked to the war in Ukraine. The context is also monetary tightening by the major central banks.
Interest rate easing
Shortly after 4 p.m., the Bedroom 40 increased by 1.28% to 6,618.14 points in a business volume of 2 billion euros. In New York, the Dow Joness gains 0.55%, while the Nasdaq Composite lose 1%.
The yield on the 10-year US bond eased 4 basis points to 2.89% after hitting 2.94% the day before, the highest level since the end of 2018. BofA analysts believe that the panic fear concerning inflation is exaggerated and should peak in the second quarter before easing towards the end of the year.
Closer to home, the yield of the French 10-year OAT also fell by 4 basis points, to 1.3410%, and that of the German Bund of the same maturity fell after hitting its highest since 2015 on Tuesday. banks benefit from it, like BNP Paribas, Agricultural credit and Societe Generale, which increased by around 4%.
Danone driven by its revenues and rumors
Danone advance of 6.3%. The agrifood giant reported a 7.1% growth in its turnover in the first quarter, above expectations, which allows it to confirm its annual forecasts. For Jefferies, sales were “ significantly » supported by the specialized nutrition division, which accounts for 30% of revenues and 51% of profits. The title is also carried by rumours, relayed by Letter A, according to which Lactalis is studying a possible offer for all or part of the capital of Danone. The group indicated that it had no disposal plan for its three categories of assets. Be that as it may, Bernstein believes that a rapprochement between the two groups would make sense in terms of complementarity.
Teleperformance garners 5.2%. The business services group published revenue of 1.96 billion euros for the first three months of 2022, up 6.5% like-for-like. These figures are consistent with the annual objectives communicated by the group, namely organic growth excluding Covid contracts of more than 10% and more than 5% including them.
Among other technology stocks, STMicroelectronics gains 3.6%, supported in particular by the turnover slightly above expectations of the Dutch ASMLwhich reported that demand outpaced shipments in the second quarter.
The Le Pen risk underestimated?
L’Oreal takes 1%. The cosmetics giant saw its organic growth accelerate in the first quarter, thanks in particular to the lifting of health restrictions in Europe and continued strong demand in China, and said to itself ” optimistic about the prospects for the global beauty market despite an uncertain geopolitical context.
Thales and Dassault Aviation yield more than 1%. Morgan Stanley downgraded both groups from “overweight” to “line weight”.
The Federal Reserve will publish its Beige Book at 8 p.m., which takes stock of the evolution of the economy over the past two months and will serve as a basis for the work of the monetary policy committee next month. To follow, also in the evening, the debate between the two rounds of the presidential election between Emmanuel Macron and Marine Le Pen. Many strategists warn that the risk of a victory for the Rassemblement national candidate is underestimated.