After having experienced its worst session since April 6, the Paris Stock Exchange should regain color on Tuesday, in the wake of the fragile rebound of the Chinese markets and Wall Street, even if the specter of a confinement of the city of Beijing continues to weigh on investor sentiment.
The CSI 300 of the main stocks listed on Shanghai et Shenzhen recovered 0.9% before ending on a decline of 0.6% the day following a plunge of almost 5%. The market took note of Banque Populaire’s decision to Chine to reduce by 100 basis points the rate of compulsory foreign exchange reserves of commercial banks. The central bank is also committed to promoting a stable and healthy orientation of the financial markets.
Beijing massively tested
This decision comes within the framework of a policy of health restrictions which manifests itself in the confinement of several large cities to curb the expansion of Covid-19 infections, which might apply to the capital Beijing where the authorities are massively testing the population. This Damocles Sword is clouding the economic outlook and affecting market sentiment, as is the more restrictive turn adopted by the US Federal Reservewhich is preparing to raise interest rates by 50 basis points in May and June.
The three major New York indices also rebounded at the end of the session on Monday, supported in particular by the takeover of the social network Twitter by Elon Musk for 44 billion dollars, as well as cheap purchases of technology stocks in the run-up to the quarterly publications of the big names in the sector. Alphabet and Microsoft will open the ball in the evening. Meta Platforms (ex-Facebook), Amazon and Apple will follow on Wednesday and Thursday respectively.
Orange confirms
In addition to company publications, the session will also be animated by a series of macroeconomic indicators from the UNITED STATESand notably durable goods orders for March, the consumer confidence index as assessed by the Conference Board for the month of April and new home sales for March.
Orange confirmed that it is aiming for an increase in its restated adjusted gross operating profit (Ebitdaal) on a comparable basis in 2022, while this indicator has, as expected, increased faster than turnover in the first quarter. However, this is in line with expectations.
M6 announced quarterly results up but still below their pre-health crisis level. In the first quarter, consolidated sales increased by 8.7% over one year, to 322.5 million euros. archyde news revenue grew by 5.3% over one year, to 252.2 million euros. The group’s consolidated current operating income (Ebita) reached 67.2 million euros in the first three months of 2022, compared to 64.3 million euros in the first quarter of 2021.
Faurecia announced to postpone its capital increase due to the deterioration of market conditions and to suspend the payment of its dividend for 2021. The automotive supplier also delivered Hella-integrated financial targets for 2022 and published organic sales growth in the first quarter.
Lagardere reported a 44% growth in its turnover to 1.3 billion euros in the first quarter. The group confirms its outlook for 2022.
Among analysts’ notes, Bernstein raised his recommendation on Carrefour from “underperformance” to “inline performance”.
