The Paris Stock Exchange has almost erased its losses of the last three weeks, thanks to a break in the “selloff” on the bond markets. Tech stocks logically benefit from this Worldline, Capgemini and STMicroelectronics posting increases of between 2.7% and 3.9%, while cyclical stocks follow suit. At the European level, only the Stoxx 600 of banks shows a decline, all in all limited to 0.2%.
At 12:10 p.m., the Bedroom 40 gains 1.43% to 7,128.78 points in a business volume of 1 billion euros. The contracts future March on US indices posted increases of 0.6% to 0.9%. disneya component of the Dow Jones, and Uber Technologies will release their quarterly results after the close of Wall Street.
The ECB seeks to calm things down
The yield on the 10-year German Bund, which serves as a benchmark in the euro zone, eased 4 basis points to 0.2210% after touching 0.2715% on Tuesday. It had gone back above the 0% threshold at the end of January for the first time since May 2019. That of the Italian BTP of the same maturity fell by 5 basis points to 1.7950%. However, it remains 40 basis points above its level at the start of last week.
ECB officials have recently been busy calming the “hawkish” anticipations raised by Christine Lagarde’s comments during her press conference last Thursday. The central bank chair herself tried to calm things down by saying that any tightening would be “ gradual “, while the Governor of the Banque de France, Villeroy de Galhau, estimated before the Finance Committee of the National Assembly that the reactions of the market were ” maybe too high “.
Beware of US inflation
Morgan Stanley strategists say analysts’ forecasts for European corporate profits are overly pessimistic as the eurozone economy recovers from the two-year shock of the pandemic. “Consensus estimates remain very moderate “, according to them. They add that expectations of 6% aggregate growth in corporate profits are lower than their economists’ GDP growth forecasts. Furthermore, they do not believe that a more aggressive ECB will have a destabilizing effect on the outlook for equities.
The yield on the 10-year US bond eases for its part by nearly 4 basis points to 1.9253%, whereas it recently came close to 2%. The bond markets are nevertheless exposed to expectations of several monetary tightenings by the Fed this year. Investors therefore remain focused on the main meeting of the week, scheduled for tomorrow, with the consumer price statistics for January in the United States. The market is preparing for an acceleration of inflation to 7.3% over one year, which would be a new high of almost 40 years, after 7% in December.
Amundi exceeds its strategic objectives
Biggest rise in SRD, Eramet advance of 5.9%. Exane BNP Paribas raised its target price on the title of the mining group from 82 to 126 euros, maintaining its opinion of “outperformance”.
Amundi increased by 4.6%. The group announced that it had already exceeded its strategic objectives for 2022, while it reported a sharp increase in annual results last year, thanks to the growth of retail and its activities in Asia. The asset manager, 70% controlled by Crédit Agricole, published adjusted net income of 328 million euros over the October-December period, up 14% over one year. Over the whole of 2021, the group’s adjusted net income increased by 37%, to 1.315 billion euros.
Renault gains 3.4%. Its alliance partner Nissan Motor yesterday raised its operating profit forecast to 210 billion yen (about 1.6 billion euros) for its fiscal year to the end of March 2022, against 180 billion estimated in November. In Tokyo, Nissan ended with a gain of 5.7% this morning.
Airbus appreciated by 1.6%. The aircraft manufacturer said it had received 36 orders for aircraft in January 2022. The group also delivered 30 aircraft to twenty customers last month. The motorist Saffron advance of 2.5%.