(CercleFinance.com) – After gaining up to nearly 1.5%, around 7225 points at midday, the Paris Stock Exchange lost a little altitude during the last hour of trading, nevertheless concluding the session on an honorable gain of 0.96%, to 7188 points.
The CAC40 benefited in particular from the good performances of Crédit Agricole (+4.2%) and Legrand (+4%) after the announcement of their results (see below).
On the other side of the Atlantic, the upward momentum is for the moment much more timid, Wall Street contenting itself with +0.2% on its three indices, S&P500, Dow Jones and Nasdaq.
On the statistics front, investors were rather reassured by the German inflation figures published this morning by Destatis. Thus, while consumer prices across the Rhine have accelerated slightly over one year (rising from +8.6% in December to +8.7% in January), they remain below the expectations of economists who were counting on +8.9%.
In the United States, jobless claims in the United States increased by 13,000 during the week of January 30, standing at 196,000 against 183,000 the previous week, according to the Labor Department.
The four-week moving average – seen as a better indicator of the underlying trend in the jobs market – shows a decline of 2,500 week-on-week to 189,750.
Finally, the number of people regularly receiving benefits increased by 38,000 to reach 1,688,000 during the week of January 23, the last week available for this statistic.
On the bond front, the T-Bonds relax by -2.5Pts towards 3.6150% but the ‘6 months’ erases only -1Pt to 4.9150% and the ‘1 year’ remains stable at 4.87 %, which demonstrates that expectations are leaning in favor of rates going beyond 5.25% while US growth would suffer from a slowdown by 2024.
Note that the euro gained +0.4% against the greenback and is now trading against $1.0754.
While the earnings season has been rather disappointing so far in the United States, investors are on the lookout for any statement from their leaders regarding the outlook for activity for 2023.
On Wednesday, the Fed Chairman said he would not rule out accelerating the pace of Federal Reserve rate hikes if strong economic indicators warrant.
According to the CME Group’s FedWatch barometer, the estimated probability of a 50 basis point rate hike after the March meeting, rather than 25 points, fell from 0% to 9% less a week, and a rise of 25Pts in May now receives 60% of the vote.
“There is a growing divergence between the ‘hawkish’ outlook of central banks and the more ‘dovish’ outlook of the markets”, worry the Neuberger Berman teams.
In corporate news, Legrand has unveiled a net income group share up 10.5% to 1 billion euros for 2022, with an adjusted operating margin before acquisitions of 20.7% of revenue. business, up 0.2 points compared to 2021.
Crédit Agricole SA announces for the year 2022, net income group share of 5.44 billion euros, i.e. a decrease of 7% in published data, but an increase of 1.3% in underlying data (i.e. i.e. excluding specific items).
Unibail-Rodamco-Westfield presents adjusted net recurring earnings per share (RNRPAA) of 9.31 euros for 2022, up 34.7%, ‘thanks to the performance of the shopping center activity and the sharp rebound in the congress and exhibition activity’… but the group will not distribute dividends for the 2022 financial year.
For its part, Vinci published net earnings per share for 2022 at 7.47 euros, up sharply by nearly 66% compared to 2021, and operating profit on activity (ORPA) of 6.82 billion euros. euros, compared to 4.72 billion the previous year.
Finally, Atos announced the signing of a contract for the development and installation of a new high performance computer on behalf of the Max Planck Society, an internationally renowned scientific and technological research organization.