The Paris Stock Exchange is moving below its highest of the day, while Wall Street is moving towards an opening in scattered order. The basic trend is nevertheless supported by the hope of progress in the ongoing discussions between Russia and Ukraine with a view to a possible ceasefire. But caution remains in order as the Kremlin has repeated that Moscow will carry out its operations until their end. The Kremlin spokesman, Dmitry Peskov, indeed announced during a press briefing that Russia has the necessary resources to achieve its objectives in Ukraine.
The decline of more than 3% in oil prices is a support factor, while bond markets are under pressure in Europe and the United States in anticipation of a tightening of monetary policies by central banks in an attempt to curb the soaring prices as inflation hit record highs on both sides of the Atlantic. The yield of the 10-year German bond and that of the American TBond of the same maturity are stretched by more than 10 basis points to expect 3-year highs.
Around 2 p.m., the Bedroom 40 increased by 1.47% to 6,352.23 points in a business volume of 2 billion euros. In Frankfurt, the Dax wins 2.21%, while the Footsie Londoner, heavily weighted in commodity producers, gained 0.22%. The contracts future March on indices on the Dow Jones index gained 0.5%, while the deadline on the Nasdaq 100 yielded 0.2%. Apple fell by nearly 2% on the New York stock exchange following the cessation of production of its supplier Foxconn in Shenzhen following the containment of the city by the Chinese authorities in response to a resurgence of contaminations in the Covid-19.
Banks and the automobile remain surrounded
Values exposed to Russia are again in the spotlight, particularly financials and those linked to the automobile. BNP Paribas, Agricultural credit and Societe Generale are awarded between 1.3% and 3.5%, the credit insurer Coface advance of 6.3%. Stellantis takes for its part 3.3% and Valeo 2.7%. Danone rises 3.4%. Bernstein raised its recommendation on the agri-food group from “online performance” to “outperformance” and raised its price target from 54 to 56 euros.
Conversely, Sanofi down 3%. The group announced that the AMEERA-3 phase 2 trial evaluating amcenestrant in the treatment of advanced or metastatic breast cancer did not meet its primary endpoint of improved patient survival without disease progression. EDF loses 1.6%. The electrician estimates the negative impact on its gross operating surplus (Ebitda) of the drop in production in 2022 compared to 2021 at around 16 billion euros. In February, this impact was estimated at around 11 billion euros. euros.
The effects of Western sanctions against Russia are beginning to be felt and some fear the country will default on its debt as Moscow is due to pay bond coupons this week. Russia has threatened to make its repayments in roubles, the value of which has more than halved since the start of the war in Ukraine.
Meanwhile, White House National Security Advisor Jake Sullivan is set to meet Yang Jieichi, a senior Chinese diplomat in Rome today. This meeting comes at a time when, according to Washington, Moscow has requested assistance in military equipment from Beijing. Information denied by Russia.