The Paris Stock Exchange is cutting back, while US index futures suggest a hesitant opening on Wall Street. The market welcomes reports from Bloomberg that the European Union is considering a joint bond sale to finance energy and defense investments. Analysts fear, however, that the jump in the market is only a short-term reaction as the global environment remains weakened by the war in Ukraine.
At 2:45 p.m., the Bedroom 40 gained 0.45% to 6,008.93 points after a peak at 6,169.60 (+3.13%) in a business volume of 3.1 billion euros. In Frankfurt, the Dax takes 0.53% in Milan, the FTSE Eb rises 1.27%. The contracts future on American indices fluctuate between equilibrium and a decline of 0.5%. On Monday, the Nasdaq Composite ended in the bear market after losing more than 20% since its peak in November, while the S&P 500 had its worst session since October 2020.
Banks in sight, luxury and “tech” struggling
Bank stocks are in the spotlight, with the associated Stoxx 600 signing the best sector performance in Europe with a gain of 3.5%. In Paris, Societe Generale recovers almost 8%, thus signing the strongest rise of the Cac 40, and BNP Paribas rebounded by 4.9% while yield differentials (spread) decreased, particularly between Germany and Italy. That of the 10-year US bond tightened by 7 basis points to 1.8413% and that of the German Bund of the same maturity returned to positive territory at 0.0910%.
The large industrialists are also recovering, such asAlstom (+5.3%), Schneider-Electric (+3.1%) and Saint Gobain (+2.7%). Tarkett rebounded for its part by 6.4%.
Albioma jumped 12.5%. The American private equity fund KKR is considering a takeover of the renewable energy group specializing in biomass, Bloomberg reports, citing sources familiar with the matter.
against the trend, Hermes down 5.7%. Bernstein lowered his price target on the luxury saddler from 1,363 to 1,180 euros while maintaining his opinion at “online performance”. Note also the 6.7% decline in Dassault Systems and that of 5.5% of Teleperformance.
New records for nickel and wheat
Market sentiment remains fragile, with the commodity boom continuing to fuel fears over inflation, which has already reached record highs in Western countries. And the prospect of an embargo on Russian oil imports is not reassuring.
If the Europeans are more than reserved, the Biden administration seems determined to move forward on this point, even without its allies, reports Reuters, citing sources familiar with the matter. Russia has warned against such a move, which it says would exacerbate soaring oil prices and lead to the closure of the main gas pipeline to Germany, Nord Stream 1.
For the time being, the barrel of Brent from the North Sea remains above 128 dollars, after a high of nearly 14 years at 139.13 reached on Monday. Among the other firsts, nickel crossed the 100,000 dollar mark per ton, an increase of 250% in two days. Trading in this metal has been suspended for the day on the London Metal Exchange (LME). Gold is closing in on its side of an 18-year high and wheat hit a record high last night in Chicago as the conflict in Ukraine shows no sign of easing.