The Paris Stock Exchange rose for the second session in a row, while recording a decline of 1.1% during the week after falling by about 4% on Monday, the largest since the emergence of the Omicron variable. The market is waiting for indications of the first monetary tightening of the US Federal Reserve since 2018. So far, the market has priced one rate hike in March, followed by three more this year.
Around noon, a file appeared 40 It rose 2.15% to 6,985.07 points in a turnover of 1.2 billion euros. Contracts futures US indices rose in March between 0.95% for the Dow Jones and 1.94% for the Nasdaq 100. The “high-tech” index and US growth stocks lost more than 2% Tuesday night. Microsoft advances 4% over the stock market after posting results and sales above expectations last night thanks to its “cloud” division.
It’s time for the hawks to rest.
January is expected to be the worst month of the year for the Nasdaq Composite Index since 2008. Tensions in Ukraine, the International Monetary Fund’s downgrade of global growth forecasts, particularly due to the slowdown in the United States and China, as well as the “hawkish” Fed in the face of inflation At its highest levels since 1982, it largely explains the high volatility in the market. So investors are waiting to learn more about this last point, based on the strength of the December meeting “minutes”, as they seek to assess the Fed’s determination to fight inflation and shrink the size of its balance sheet, which is close to $9 trillion.
« Relaxation time likely soon for Fed hawks since the Fed has nothing to gain from texting Today’s hawks Destroyed stock markets won’t help them change the inflation situation, notes Ipek Ozkardeskaya, chief analyst at Swissquote.
Conversely, a fall in financial markets will only divert the Fed from what it needs to do and make inflation worse., warns, adding that Over-tightening concerns include announcing the end of quantitative easing [assouplissement quantitatif] Today, which could point to consecutive increases in interest rates, not one every quarter, and the fact that he might be surprised to raise 50 basis points in March rather than raise the probability of 25 basis points, or choose not to wait until March with a rate hike this week.
However, these optimistic forecasts are certainly exaggerated, as the Fed cannot launch a financial crisis to fix the inflation problem. We are likely to encounter the Fed’s confidence and reassurance once again in today’s announcement. If the Fed wants to continue with its more aggressive stance, it needs to control risk appetite ‘, are the nuances.
Renault and Airbus lead the Cac 40
The issue of reducing the size of the balance sheet is also on the table. ” Powell is moderate “extremist” Will be “doves” From a market perspectiveStephen Englander, head of currency research at Standard Chartered, wrote in a note. If Powell says the FOMC is determined to get inflation back on track while saying he’s confident that some rate increases combined with quantitative tightening will be enough, it will be “doves” In terms of market perception ‘, he adds.
The largest increase in Cac 40, Renault He takes another 6% on the eve of the press conference of the alliance formed with Nissan and Mitsubishi Motors.
foresia It rises 3.2%. The auto supplier has announced that the European Commission has authorized it to acquire a majority stake in its German counterpart Hella. In doing so, the French group will acquire a total of 79.5% of Hella’s share capital, including 60% of the Hueck family complex and approximately 19.5% under the settlement of the public tender ending November 11, 2021.
Airbus by 5.1%. The aircraft manufacturer said the Airbus helicopter division recorded 414 net orders and delivered 388 in 2021, compared to 300 in 2020, underlining a rebound in demand. Morgan Stanley reiterated its recommendation to “outperform” the title with a target of €135.
Valniva 8.2% profit. The group announced that it has started the phase 3 booster vaccinations of its clinical study of its anti-Covid vaccine in the adult participants of its study.
photo He gets 7%. Bloomberg News said the company, which extracts the minerals and sells them to industry, is considering selling its “Heat Temperature Solutions” business.
swear He gets 5.7%. The small home appliance specialist indicated that it is targeting an operating margin on activity of 10% for 2021 thanks to record sales, while its operating profit should be on the activity. slight “Exceeding 800 million, including additional costs – materials, components, shipping and currency – estimated as expected at around 300 million euros.