The Paris Stock Exchange fell slightly by 0.18% on Wednesday, as Powell’s reassuring remarks failed to offset the drop in the prices of TotalEnergies and Société Générale after the publication of their results.
The star CAC 40 index lost 12.52 points to 7,119.83 points. The Parisian rating had stagnated (-0.07%) the day before while awaiting with apprehension an intervention from Mr. Powell.
U.S. central bank chief Jerome Powell said on Tuesday that further rate hikes would likely be needed if economic data continued to be stronger than expected in the United States.
“The equity market does not integrate this conclusion (of the need for further rate hikes) and hears that American growth is not at risk”, comments Céline Weill-Alliel, manager of Uzès Gestion.
Jerome Powell also reaffirmed that inflation was falling, which, in the eyes of investors, may foreshadow a pause in rate hikes.
The remarks eased some fears raised by stronger-than-expected U.S. labor market data released on Friday, although it remains difficult for investors to take a firm stance on future monetary policy developments. American.
“There are two opposing visions and one prevails over the other, the market wants to be optimistic,” said Céline Weill-Alliel, manager of Uzès Gestion.
In the bond market, yields on short-term European government bonds, the most sensitive to investors’ interest rate expectations and inflation, rose after the European Central Bank (ECB) decided the day before to from May 1, reduce the interest rate that banks in the euro zone apply to deposits from governments and other public structures. The measure is intended to gradually reduce these deposits and to reinject this liquidity into the market.
TotalEnergies runs but the action stalls
TotalEnergies posted the largest profit in its history, of 20.5 billion dollars (19 billion euros) in 2022, thanks to the surge in gas and oil prices in the wake of the war in Ukraine.
The action suffered a sharp drop of 1.91% to 56.44 euros, contrasting with the strong increases recorded in recent days after the results exceeded expectations of other oil majors. TotalEnergies’ profits came out just in line with expectations.
Societe Generale shunned
Societe Generale fell 5.03% to 26.62 euros after publishing an increase in turnover in 2022, but a net profit almost divided by three, to 2.02 billion euros, due to the negative impact of the sale of its Russian subsidiary Rosbank, but which nevertheless exceeded analysts’ expectations.
“The only negative point concerns the distribution, slightly below expectations” of the fourth quarter, believe those of Jefferies in a note. Other analysts anticipate a drop in income in 2023 and preferred to invest in BNP Paribas (+ 2.42% to 63.85 euros), which plans to buy back 5 billion euros of its shares in 2023.
Results well received for Amundi
The European leader in asset management Amundi (+2.61% to 62.85 euros) completed a positive 2022 financial year in terms of capital raised in its funds, even if its net profit fell by 20% compared to the record of 2021.
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