2023-04-18 21:33:40
(Photo: Getty Images)
MARKET REVIEW. European stock indexes took advantage of the sharp rebound in post-COVID activity in China to advance on Tuesday, amid a new series of corporate results that did little to move Wall Street, which remained stable.
The Toronto Stock Exchange closed higher.
To (re)consult market news
Stock market indices at closing
In Toronto, the S&P/TSX rose 42.71 points (+0.21%) to 20,684.68 points.
In New York, the S&P 500 rose 3.55 points (+0.09%) to 4,154.87 points.
The Nasdaq ended down 4.31 points (-0.04%) at 12,153.41 points.
The DOW ended down 10.55 points (-0.03%) at 33,976.63 points.
The loon rose by US$0.0002 (+0.0299%) to US$0.7468.
The oil ended up US$0.02 (+0.02%) at US$80.85.
L’or rose US$10.80 (+0.54%) to US$2,017.80.
The bitcoin closed up US$912.40 (+3.10%) at US$30,353.01.
The context
China announced first quarter growth of 4.5% year on year, driven in particular by retail sales up 10.6% year on year in March. “Consumers have started to spend” notes Stephen Innes, of Spi AM, who however notes the weakness of industrial production.
Very oriented towards global growth, of which China is the pillar, the European indices gained 0.47% in Paris, 0.59% in Frankfurt, 0.38% in London and 0.69% in Milan.
If the results of American companies are generally “solid”, according to Craig Erlam, analyst of Oanda, too good results risk pushing the American Central Bank (Fed) to continue to tighten its monetary policy to bring back as soon as possible inflation close to its 2% target.
An influential member of the Fed, James Bullard, has already said that the Fed could raise its rates another three times, more than what investors imagine, also noted Mr. Erlam.
“We haven’t had a crisis in the banking sector, but at the same time, there is not total confidence in the banks either”, Steve Sosnick of Interactive Brokers referring to the latest figures from Goldman Sachs and Bank of America.
Goldman Sachs (GS, -1.70% to US$333.91), affected by the drop in the results of its investment bankers and its brokers in the first quarter, announced on Tuesday a drop in its turnover and its profits (-19%). Bank of America (BAC), the second-largest U.S. bank by asset size, saw its quarterly revenue climb, but the amount of deposits fell 8% from a year ago. Its title advanced 0.63% to US$30.56.
The pharmaceutical laboratory Johnson & Johnson (JNJ, -2.81% to US$161.01) posted a first-quarter net loss, linked to litigation costs, while raising its 2023 targets.
Netflix (NFLX) gained subscribers, but posted a declining year-over-year net profit in the first quarter. Around 5 p.m., the title nibbled 0.83% to US$330.70.
In Europe, the Swedish telecom equipment giant Ericsson announced that it had reinforced its savings plan intended to restore its profitability, forecasting a “turbulent environment” this year after a first quarter marked by an expected drop in profits. The stock fell 8.59% in Stockholm to US$5.39.
The action of the online seller of beauty and nutrition products The Hut Group (THG) fell 19.84% in London after the group announced a net loss that quadrupled in 2022 to almost 540 million pounds. On Monday, it had jumped 45% on a potential takeover of the American venture capital fund Apollo.
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