The Paris Stock Exchange closed the session this Wednesday with a stable note (+0.07%, up to 6,542.14 points). The Cac 40, which lost almost 1% after an upward opening, finally gained 0.08%, to 6,542.14 points, as the season of publications of the companies of their accounts and/or income for the first quarter .
In France, LVMH was the first of the Cac 40 companies to take stock of its activity last night. The luxury giant, owner of the Louis Vuitton and Dior brands, its main sources of profit, gained more than 2% on the stock market this morning before taking a radical turn (-2.6% at the low of the day), to finally they end up rising slightly by 0.5%. The French coastal heavyweight reported 29% sales growth in the first three months of 2022, much better dynamics than expected by financial analysts.
Deutsche Bank’s Adam Cochrane notes in particular that the $18bn turnover, $4bn more in a year, is $1.6bn higher than his estimate. The meteorologist points out that LVMH’s activity was not affected by the war in Ukraine. And as for the reconfinement measures in Porcelain, the largest market for luxury players? They only had an impact at the end of the quarter. The clash, on the other hand, could have been more pronounced in the second quarter. The China issue was at the center of analyst questions during the LVMH conference call. Furthermore, it is feared in Invest Securities, “The second quarter should start to show signs of a more marked slowdown in an environment where the impulse the growth of the world economy is fading. If LVMH is protected from inflation by its pricing power, however, remains sensitive to economic fluctuations. »
Hermes Y Dried, which also rose this morning, ended the session down 1%. LVMH’s publication of its first quarter sales also had an impact on Pernod Ricard (-2.49%) and Remy Cointreau (-4.4%) while, as noted within the investment bank Jefferies, the “Wines & Spirits” division of the world’s number one luxury brand experienced a “Good beginning of the year”.
Total Energies gained more than 1% supported by the prices of the Petroleum which have been increasing since yesterday.
Stellantis also finishes at the top of the rankings after having confirmed, during its general meeting, its margin target for this year despite worsening tensions over raw materials.
a street wall, JPMorgan Chase, a component of the Dow Jones, fell 3%. The bank reported a 42% drop in first-quarter profit, hit by a $902 million credit provision and a $524 million loss related to the market slump following the invasion of Ukraine by Russia. However, the net banking result exceeded expectations.
quarterly issues of black rock, Closing Y delta airlines are, on the other hand, received with great optimism, which allows the American markets to advance despite the fact that the publication shows the historic boom in producer prices.
Inflation will weigh on Tesco profits
The PPI index rose 1.4% last month and posted a record year-over-year increase of 11.2%. Excluding food and energy, the increase reached 0.9% in one month and 9.2% in one year, compared to +0.5% and 8.4% respectively forecast by economists. The acceleration seen in the “core” data goes against the slowdown seen yesterday for the same component of consumer prices. In the United Kingdom, inflation jumped 7% year-on-year in March, the highest in 30 years.
Across the Channel, Britain’s number one retailer, Tesco, warned that its profits will fall this year due to inflation.
Against this backdrop of inflation, slowing consumption, tight supplies and gasoline shortage risks, Goldman Sachs strategists have lowered their earnings per share estimates for the Stoxx 600 companies to +2% this year from +8% previously. . Those of Barclays, for their part, point out that the forecasts of the companies become more important to the extent that investors focus on prices, margins, supply and demand problems.
Toward USAEarnings at S&P 500 companies are expected to appreciate 4.5% over the period, according to FactSet estimates, the smallest gain since the fourth quarter of 2020, amid the coronavirus pandemic.