The Paris Stock Exchange is moving below its highs of the day as Wall Street struggles to extend its bullish reversal snatched at the very end of Monday’s session. Investors’ attention has shifted to central bank strategy as the US Federal Reserve begins a two-day meeting of its monetary policy committee.
Investors generally expect a 50 basis point hike in the Fed funds rate on Wednesday night as major central banks try to contain inflation. The market is also hoping for some insight into the pace of the next rate hikes, as well as the pace at which the Fed intends to reduce its balance sheet.
Shortly after 4 p.m., the Bedroom 40 takes 0.24% to 6,440.90 points in a business volume of 1.7 billion euros. In New York, the Dow Jones yields 0.27% and the Nasdaq Composite 0.21%
Pfizer lose 1%. The group disappointed by maintaining its forecasts for annual vaccines and treatments against Covid. Estee Lauder fell nearly 5% after lowering its target for sales growth and earnings per share amid health restrictions in China and war in Ukraine. In Paris, L.‘Oreal down 2.9%.
BNP Paribas aims for a “solid trajectory” in 2022
BNP Paribas increased by 4.4%. The bank reported a 19% increase in its net income in the first quarter after a strong increase in its activity, particularly in the financial markets. Revenues from the corporate and investment banking division jumped 28%. The group reaffirmed the objectives of its strategic plan for 2025 presented at the beginning of the year and said it was aiming for a ” solid trajectory in 2022.
Agricultural credit and Societe Generale follow with gains of 2.5%.
TotalEnergies rose 2.4% in the wake of BP’s 4.1% increase in London. The British oil group benefited from the surge in oil and gas prices in the first quarter, which enabled it to strengthen its share buyback programme.
Alstom advance of 4.4%. Citi expects the group to generate positive cash flow in the second half of 2022 and over the next few years. The analyst author of the note, which is “purchase” on the value, stresses that the free cash flow of the group had been at the center of the debates and its main handicap last year.
Among other analyst notes, Barclays and Deutsche Bank raised their price targets on Remy Cointreau from 294 to 313 euros and from 274 to 290 euros respectively. The first maintains his opinion to “overweight” and the second to “buy”. The action of the spirits group wins 1.2%.
Hardly yesterday, the other cyclical stocks are also rebounding. ArcelorMittal garners 4.4%, Renault 3.8% and Stellantis 2.7%.