Supported by American statistics, the Cac 40 regains 6,400 points


Supported by American statistics, the Cac 40 regains 6,400 points
Written by madishthestylebar

Bright sunshine above the Palais Brongniart. the Bedroom 40 ended Tuesday’s session up 1.3% to 6,430.19 points, in a business volume of 3.4 billion euros. The good performance of Wall Street, where the S&P500, with a gain of 1.4%, will try to extricate itself from a series of six weeks of decline in a row, supported the Parisian market. the Dow Jonesthe managers’ benchmark index, and the Nasdaq Composite, with technological coloring, are also benefiting from bargain purchases after their poor performance in recent weeks. They earn 0.78% and 1.93% respectively.

Never bet against the American consumer”

Investors also welcome the retail sales figures in the United States. Faced with the surge in inflation, households tend to arbitrate, favoring essential expenditure (food, housing, transport) to the detriment of discretionary expenditure, such as leisure or clothing. Confident in the solidity of the employment market – the unemployment rate is only 3.6% and wages remain at high levels – Americans continued to consume, at a good pace in April. Retail sales rose 0.9% month on month, after rising 1.4% in March (revised from 0.5%), according to Commerce Department figures. This data is broadly in line with the expectations of economists, who had forecast a 1% increase in retail sales. Nine of the thirteen categories of goods screened recorded an increase in their sales last month, such as car sales, food or restaurant expenses. This sustained demand allowed industrial production to increase more than expected last month in the country, by 0.8% over one month against 0.4% expected by the consensus.

Never bet against the American consumer has always been a good adage that I have kept in mind throughout my 20 years of experience in the marketscomments Paul Ashworth, chief US economist at Capital Economics. Despite soaring prices weighing on their purchasing power, the American consumer now seems to be single-handedly keeping the global economy afloat. Beware, however, that retail sales data is not adjusted for inflation. Actual spending data will be released next week. In any event, this indicator, added to the 8.3% increase over one year in April in the consumer price index, should comfort the American Federal Reserve (Fed) in its strategy of raising interest rates. ‘interest. The head of the institution, Jerome Powell, recalled at the end of last week that increases of 50 basis points in interest rates Fed-funds at the next two meetings will be enough to stem inflation. No need to come to an increase of 75 basis points, according to him.

The Engie share flown over

Sign that the American consumer is not reluctant to put his hand in his pocket, especially when it comes to renovating his interior, the turnover of the DIY brand Home Depot reached 38.91 billion dollars in March 31, well beyond the 36.72 billion expected by the Bloomberg consensus, i.e. growth of 3.8%, and 2.2% at constant number of stores. Net profit came to $4.23 billion, or $4.9 per share, from $3.86 a year earlier.

On the values ​​side, Engie, last Cac 40 company to present its accounts as of March 31, raised its forecast for the full year : EBITDA is now forecast between 11.7 and 12.7 billion euros, against an initial range of 10.7 to 11.1 billion. As for recurring net profit, it should be between 3.8 and 4.4 billion, wider bounds than the previous ones (3.1-3.3 billion). These estimates have earned the title to climb 5.3% and take the lead in the Cac 40. Regarding the supply of Russian gas, the group has remained discreet about the mechanisms being developed to pay its supplier, in compliance with the framework set by Brussels, while Russia demands rubles for its gas. Societe Generale (+3.62%) and Schneider-Electric (+3.37%) complete the winning trifecta.

Conversely, Pernod Ricard fell 1.18%, in reaction to the lowering of Morgan Stanley’s price target. The broker is targeting 220 euros, against 230 euros previously. At last, Eliorlisted on the SRD, soared 7.52% on the eve of the presentation of its results for the first half of 2021-2022.

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