The Paris Stock Exchange lashed out, had to deal with a further drop in the Nasdaq Composite in early trading, but held on! After three drops in a row, and specifically a fall of 2.21% on Wednesday, the Cac 40 managed to rebound in this last session of the week, 1.34%, not without having gained more than 1.8% in what best in the morning. . However, at 6,548.22 points, it registered a weekly drop of 2.04%.
In New York, traders remain concerned about the rebound in bond yields, pointing to 2.7% this Friday for 10-year paper (it was 2.38% at the end of last week and 1 .63% at the end of 2021), weighing down technology and growth stocks, as well as, indirectly in Paris, in Dassault Systems (-3.6%), worldline (-2.8%) or even STMicroelectronics (-0.6%).
The fed I was too optimistic
« The expected rapid rate hike cycle indicates that in hindsight the Fed’s (and most economists’) ‘transition inflation’ scenario was too optimistic, the central bank must now play aggressively after delaying the curve. “writes in a note Maneesh Deshpande, director of equity strategy USA at Barclays. As part of the minutes released on Wednesday night, the Federal Reserve indicated that it would reduce its balance by 95,000 million dollars per month and that it foresees increases of more than 25 basic points to curb inflation.
Traders are also looking forward to the start of quarterly earnings season, which kicks off next week with releases from five major banks: JPMorgan on Wednesday, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo on Thursday.
First round Sunday in France
In France, attention is also focused on the first round of the presidential elections that takes place this Sunday. immanuel macron Y Marina LePen they would arrive at the head of this vote for which they are attributed respectively 26% and 22% of the voting intentions, according to the Opinon Way – Kéa Partners barometer for the echoes and Classic Radio. The narrowing of the gap between the two candidates has been weighed in recent days by the pro-Putin and anti-European positions of Marine Le Pen. ” We expect Macron to be re-elected with a narrow lead over Le Pensays Lale Akoner, market strategist at BNY Mellon Investment Management. A Macron victory would be welcomed by the markets, signaling the reduction of political uncertainty and the renewal of a pro-business government. “, she adds.
Nevertheless, ” if the prospect of an exit from euro zones seems further away than during the 2017 campaign, the possibility of Marine Le Pen coming to power remains a major risk for financial markets “, says Jonas Goltermann, from Capital Economics. Furthermore, he points out that ” the recent electoral crisis in favor of the far-right candidate Marine Le Pen before the French presidential elections is beginning to affect the financial markets ».
Alstom and Sodexo at the top
Greater increase in the Cac 40, Alstom rose 5.4%. The rail equipment supplier’s title is among Citi’s “top picks”. While the broker is cautious about the outlook for the electrical equipment sector in Europe, it favors the energy transition and automation. Citi is also buying Rexel (+3.6%).
Sodexo it also took 5.4%, supported by a note from RBC, which moved from “online performer” to “outperformer” in the crowd-catering group’s headline. The analyst author of the note considers that the discount of the share compared to its competitors is exaggerated to the extent that its business model it should enable it to hold up better than average in a more uncertain environment and potentially in the grip of stagflation.