The Paris Stock Exchange is picking up after closing on Monday at a six-week low. The market is boosted by the rebound on Wall Street and good company publications in Europe, particularly in the banking sector. UBS released its best quarterly profit in 15 years this morning, supporting BNP Paribas, Agricultural credit and Societe Generale, who earn more than 1%. The 19 Stox 600 sector indices are in the green, starting with that of basic resources which resumed 2.6%, after its fall of 6% on Monday, caused by fears of a slowdown in the Chinese economy.
Mid-session, the Bedroom 40 gained 1.06% to 6,517.90 points in a business volume of 910 million euros. The contracts future June on US indices fell between 0.2% and 0.3%.
The CSI 300 of the main stocks listed in Shanghai and Shenzhen recovered up to 1.5% on Tuesday before ending on a decline of 0.8% the day after a plunge of nearly 5%. The market took note of the decision of the People’s Bank of China to reduce by 100 basis points the rate of compulsory foreign exchange reserves of commercial banks. The central bank is also committed to promoting a stable and healthy orientation of the financial markets.
Beijing massively tested
This decision comes alongside a policy of health restrictions reflected by the confinement of several large cities to curb the expansion of Covid-19 infections, which could apply to the capital Beijing where the authorities are testing the population massively. This sword of Damocles is clouding the economic outlook and affecting market sentiment, as is the more restrictive turn taken by the US Federal Reserve, which is set to raise interest rates by 50 basis points in May and June. .
The three major New York indices rebounded at the end of the session on Monday, supported in particular by the takeover of the social network Twitter by Elon Musk for 44 billion dollars, as well as by cheap purchases on technology stocks at the approach of the publications. quarterly reviews of the big names in the sector. Alphabet and Microsoft will open the ball in the evening. Meta Platforms (ex-Facebook), Amazon and Apple will follow on Wednesday and Thursday respectively.
Orange confirms, Saint-Gobain recommended
Orange takes 0.5%. The operator confirmed that it is aiming for an increase in its restated adjusted gross operating surplus (Ebitdaal) on a comparable basis in 2022, while this indicator, as expected, increased faster than turnover in the first quarter. However, this is in line with expectations.
Biggest increase in the Cac 40, Saint Gobain rose 3.6%, driven by a note from Kepler Cheuvreux, which went from “hold” to “buy” on the title of the building materials giant. The target price is also raised from 62 to 75 euros.
Among other analyst ratings, Bernstein went from “underperforming” to “inline performance” on Crossroadswhich appreciated by 1.5%.
M6 gains 1.9%. The television group announced quarterly results up but still below their level before the health crisis. In the first quarter, consolidated sales increased by 8.7% over one year, to 322.5 million euros. Advertising revenue grew by 5.3% over one year, to 252.2 million euros. The group’s consolidated current operating income (Ebita) reached 67.2 million euros in the first three months of 2022, compared to 64.3 million euros in the first quarter of 2021.
Faurecia yields 1.2%. The automotive supplier has announced that it is postponing its capital increase due to the deterioration of market conditions and suspending the payment of its dividend for 2021.
Orpea down 2.1%. The Ephads manager announced the publication of the first results of the independent external audits and the postponement of the presentation of its annual results, currently being audited, to May 13.