The Paris Stock Exchange is expected to rise slightly as the monetary verdict of the European Central Bank (ECB) approaches. In New York, the interest rate-sensitive Nasdaq Composite closed with a 2% gain, halting a streak of three straight declines. The session will also be animated by the quarterly sales figures of Publicis and Hermès, as well as the results of Goldman Sachs, Morgan Stanley, Citigroup and Wells Fargo.
The Governing Council of the ECB will publish its monetary policy statement at 1:45 p.m., before Christine Lagarde’s press conference, scheduled for 2:30 p.m. If no decision on interest rates is expected, the institution could give more indications concerning the withdrawal of its program of purchase of assets, without fixing a precise date. Like its American counterpart, the ECB is more worried about inflation, which has reached a record 7.5% in the euro zone, than about the war in Ukraine. It has also already indicated that it will only raise its interest rates once the quantitative easing is over.
See you in June?
No major decision is therefore expected today, but the June meeting, during which the new economic projections will be presented, could be an opportunity to clarify the evolution of monetary policy. Be that as it may, Christine Lagarde will have to recognize that inflation is much higher than expected. And, in our view, monetary officials should be quick to advance their rate hike schedule once again as inflation continues to surprise on the upside. “says Andrew Kenningham, chief economist Europe at Capital Economics.
The US Federal Reserve has already raised interest rates by a quarter of a point to fight inflation and is preparing to raise them by half a point in May and June. Meanwhile, consumer price inflation has eased in core data, which excludes volatile developments in food and energy, raising hopes that inflation is approaching its peak. Thus, the Fed could ultimately be led to proceed with less monetary tightening than expected.
Asian markets rose this morning, led by Wall Street as well as the nearly 2% rise in China’s CSI 300. The country’s authorities have made it clear that they are planning to take measures to support the economy, which could include lowering the reserve requirement rate of the big banks in order to revive an economy weakened by the confinements due to the outbreak. Covid-19 infections.
On the value side, Publicis reported organic growth of 10.5% in the first quarter, above analysts’ expectations, without however revising its forecast for the full year, due to economic uncertainties.
Hermes recorded a 27% jump in revenues to 2.8 billion euros at constant exchange rates in the first quarter, driven by demand for luxury accessories, especially in Europe and across the Atlantic, as the sector suffered the fallout from the war in Ukraine and measures to combat the coronavirus in China.
Valneva. The British Medicines Agency has approved the Covid-19 vaccine developed by the group.
Vivendi. It is this Thursday that the media and communications group must officially launch its takeover bid for the shares of Lagardere.