Towards a jump in the Cac 40 after the general “sell-off” of the markets

Towards a jump in the Cac 40 after the general “sell-off” of the markets
Written by madishthestylebar

The Paris Stock Exchange should regain a little height in the aftermath of the worst “sell-off” suffered by the world’s financial centers since the start of the pandemic in 2020. Investors remain skeptical about the tightening of monetary policies at a time when the economy world is showing signs of slowing down.

Asian markets were down this morning while trading above their lows, with the Chinese CSI 300 even appreciating 0.8% as it approached the close after starting the session lower. A reversal that can be explained by the progression of contracts future on American indices, and in particular by the increase of more than 1% of that on the Nasdaq 100 following a marked decline on Wall Street. The S&P 500 notably closed below 4,000 points for the first time since March 31, 2021.

Questions about the level to which the Fed intends to raise its interest rates continue to weaken the bond market, while the lack of a foreseeable outcome in the conflict in Ukraine and the sharp slowdown in Chinese foreign trade cloud the outlook for the Mondial economy. Especially since Beijing does not seem to be considering abandoning its “zero-Covid” policy, which is paralyzing many Chinese cities and businesses.

Liquidity conditions are deteriorating

In its stability report, the US Federal Reserve warned of deteriorating liquidity conditions in global financial markets. At the same time, some central bank officials are trying to provide reassurance about upcoming rate hikes. This is notably the case of Raphael Bostic, president of the Dallas Fed, who spoke out in favor of tightening by 50 basis points. For him, there is little chance that rates will be raised by 75 basis points, although he does not rule out the possibility.

On the commodities front, the barrel of Brent from the North Sea continues to decline after falling more than 6% on Monday as the consensus within the European Union around an oil embargo seems to be cracking .

Only one macroeconomic indicator is on the agenda: the ZEW index of economic sentiment in Germany in May. According to the consensus formed by Bloomberg, it should have continued to deteriorate to -43.5 points after -41 in April.

Renault optimistic about its mobility division

Renault. Mobilize, the car manufacturer’s new mobility and data services brand, is aiming for a double-digit margin by 2027, an illustration of the role it is called upon to play in the group’s financial recovery. The latter also announced the forthcoming sale of its 34.02% stake in its Korean subsidiary Renault Korea Motors to Chinese Geely Automobile Holding.

trigano posted higher net profit in the first half of its staggered fiscal year, but anticipates a slowdown in business in the third quarter due to the lack of components.

Airbus announced that it received 98 new aircraft orders and delivered 48 aircraft in April.

Among the analyst notes, Stifel began coverage ofAlstom to “keep” with a target price of 23 euros. Societe Generale noted Airbus from “hold” to “buy” and raised its target price from 126 to 132 euros.

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