Paris: bad news digested, good jump in the auction – 03/30/2022 at 19:05

(CercleFinance.com) – (CercleFinance.com) – The CAC40 closed the day’s session with a loss of 0.74%, at 6,741 points (almost 20 points taken during the ‘fixing’, W-Street did not move in the meantime ), having lost as much as 1.3% during the day, the day after a session in which the Parisian flagship index rose almost 3.1% on hopes of an exit from the war in Ukraine.

Q1 ends tomorrow and prices seem to ‘hold’ in this penultimate session to limit the drop to less than 7% or -8% on the CAC or the E-Stoxx50 (lost -1.2% today). In Germany, the DAX returned 1.7% while London gained 0.3%.

On Wall Street, all 3 US indices are generally down mid-session, the S&P500 fell -0.4%, the Nasdaq fell -0.7% while the Dow lost 0.2%.

“Optimism generated by today’s ceasefire talks between senior Russian and Ukrainian officials was cited as a factor supporting market sentiment,” Wells Fargo said Tuesday night.

But the ‘progress’ is considered weak by Moscow (press release published this morning) and things are not going as announced yesterday as military activity has resumed in the suburbs of kyiv (heavy bombing of Chernegiv), and Russia brings new troops after having slightly reduced the offensive in western Ukraine before the meeting of the Russian and Ukrainian envoys in Istanbul.

The barrel of oil rose strongly (+1.8%) in London, around 113 dollars.

In other bad news, the wise men advising the government are halving their 2022 growth forecasts from 3.6% to 1.8% (from an initial estimate of +4.6% at the end of 2021): Q1 2022 should result in zero growth, or even a recession… and March inflation was just measured at 7.3%, a record since 1990 (enough to chill the Bundesbank with fear).

In Spain, the inflation revealed this morning stands at 9.8%, the highest since 1985.

Producer prices in Italy shot up to +32.8% annually.

Inflation should reach 7% -or more- in Europe this month and remain in the same waters in April.

Unsurprisingly, the ESI Economic Sentiment Indices in the Eurozone this morning are down sharply for the month of April.

In the United States, two figures were published this afternoon: according to ADP, the non-agricultural private sector in the United States created 455,000 jobs in March, a figure broadly in line with the consensus, after the 486,000 creations in February (revised from an initial estimate of +475,000).

Job creation for the month ending was concentrated in services with 377,000 more jobs in this sector (including 161,000 in leisure and hospitality), while the production of goods generated 79,000.

The latest estimate for US growth in the fourth quarter of 2021 is revised down to 6.9%.

On the interest rate front, the inflation figures in Europe did not go unnoticed and the yield on our OATs rose +4Pts to 1.10%, the Bunds also +4Pts to 0.681% (the German ‘2-year’ yield positive for the 1st time since 2014), difference of +3pts for Italian construction at 2,162%.

Across the Atlantic, Treasuries fell -2.5 points (to 2.375% and 2.435% at their highest point).

As for the Parisian stocks, Total Energies is on the rise on the barrel and recovers +2%.

St Gobain, on the other hand, is in the red lantern with a drop of -3%, the auto sector is also consolidating after gains of +10 to +17% the previous day (-9% for Faurecia, -7% for Valeo).

The Unibail-Rodamco-Westfield real estate company announces the resumption of the payment of a permanent dividend from the 2023 financial year, on the occasion of the presentation of its strategic plan. The real estate company confirms its RNRAPA target of 8.20-8.40 euros for 2022, and foresees a return of the net rents of the shopping centers in Europe as well as the group’s EBITDA to its pre-pandemic level throughout 2023, with full effect in 2024.

The RĂ©my Cointreau wine and spirits group has announced that it is changing the structure of its executive committee, in particular with the creation of a transformation director and a group communication department.

Carrefour (+1.4% to 19.5E) announces the launch of Carrefour Energies, a service of electric charging points for all its hypermarkets and Carrefour Market. By 2025, 5,000 charging points will be put into service to facilitate the mobility of its customers.

Thales announces that it has signed a contract with Krauss-Maffei Wegmann. This contract concerns the supply of four PAAGs for the BOXER infantry vehicles of the German armed forces. The PAAG (Panoramic Above Armor Gimbal) is an electronic surveillance system controlled remotely from inside the BOXER armored vehicle.

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