Following in the footsteps of Wall Street yesterday, the Paris Stock Exchange rebounded in the first trade. And if the rise holds to the end, the Cac 40 could sign its first weekly gain in four weeks while it is still in the “bear market” zone (bear market) after a fall of more than 20% compared to at its peak in early January.
At 9:45 a.m., the Bedroom 40 gained 0.93% to 5,937.93 points in a business volume of 320 million euros.
In New York, the S&P 500 recovered almost 1% on Thursday, while the Nasdaq Composite gained 1.6%. The resurgence of interest in tech stocks coincides with the decline in government bond yields over the past two days on hopes that the series of aggressive Fed interest rate hikes may be cut short after the sharp decline in commodity prices, which are one of the main drivers of inflation.
The Ifo in Germany and the Michigan Trust
Copper prices hit a 15-month low and were down more than 7% over the week in Asia this morning, while oil prices are stabilizing just below $110. The latest activity indicators have indeed deteriorated, in Europe and the United States in June. American companies also recorded the first drop in their orders for two years, thus reflecting a sharp contraction in demand.
During his speech before a committee of the House of Representatives, Jerome Powell yesterday reiterated his commitment to fight against inflation, adding that this was ” unconditional “. Fed Governor Michelle Bowman said she favors raising the federal funds rate by 75 basis points in July, followed by some tightening of half a percentage point.
The analysts at work
The market will watch in the morning the Ifo index of the business climate in Germany in June. Two US indicators will follow this afternoon: last month’s new home sales and the final version of the University of Michigan’s consumer confidence index for June. Attention will be focused on the one-year inflation expectations component, which had reached a record 5.4% in the first estimate, which did not escape Jerome Powell.
Technology stocks are progressing in the wake of the Nasdaq. Dassault Systems rises by 2.3% and Teleperformance by 3.2%. Societe Generale reiterated its buy recommendation, maintaining its price target at 400 euros.
Among the other analyst notes, Societe Generale raised its recommendation on Pernod Ricard from “hold” to “purchase” to aim for 204 euros. Berenberg started monitoring vinci to “purchase” with a target of 105 euros. Deutsche Bank went from “sell” to “hold” on Air France-KLM and target 1.50 euro.
Sanofi gains 1.6%. The French group and its British partner GlaxoSmithKline (GSK) have announced that their candidate vaccine against Covid-19 containing the Beta antigen has demonstrated its efficacy and a favorable safety profile, in particular against the Omicron variant of the coronavirus.
The automotive sector continues to decline, as Renault (-2.8%), Stellantis (-1%) and Valeo (-3.5%).