The Cac 40 is trying to extend its rebound, with the yield on the US 10-year bond falling to around 1.54%, against a 13-month peak at nearly 1.62% on Monday, maintaining a certain attraction for assets at risk. This lull in rates is particularly beneficial to technology stocks. In New York, the Nasdaq Composite recovered more than 3% in early trading, after falling 11% since its record in February, which brought the index back into a correction phase. Tesla wins 7.3%, Amazon 2.8% and Apple 2.5%. The recent surge in bond yields had resulted in a rotation from stocks focused on telecommuting and remote applications to those likely to benefit from a reopening of the economy, hence the outperformance of the Dow Jones yesterday.
A Paris, Dassault Systèmes, STMicroelectronics and Worldline respectively gained 2.9%, 3.1% and 3.4%. The same catching-up trend in “utilities”, a traditionally indebted sector, likeEngie, which moved to the top of the flagship index with a gain of 4%. Conversely, BNP Paribas, Agricultural credit and Societe Generale yield between 2.4% and 3.9% under the effect of profit taking.
The OECD’s increase in its growth forecast for the global economy to 5.6% this year, from 4.2% estimated in December, is also a supporting factor for equities. The Organization for Economic Co-operation and Development justifies this recovery by the deployment of vaccination and the probable adoption of the stimulus plan in the United States, which alone should bring an additional percentage point to global GDP.
Three US Treasury issues this week
At 4:20 p.m., the Cac 40 is up 0.43%, to 5,928.77 points, in a business volume of 2.2 billion euros. In New York, the Dow Jones gains 0.64% and S&P 500 1,77%.
Investors are nonetheless monitoring the bond market as the US Treasury prepares to issue $ 120 billion in loans this week, including $ 58 billion in three-year “notes” on Tuesday, $ 38 billion. 10-year paper on Wednesday and 24 billion 30-year bonds on Thursday. Demand will be a determining factor going forward as the market questions the inflationary potential of the $ 1.9 trillion stimulus package, which, back in the House of Representatives, could be voted on and submitted for signature to Joe Biden by the end of the week. Aid for the unemployed voted in December expires on Sunday.
Suez sets its conditions to discuss with Veolia
Suez gains 0.7%. The chairman of the board of directors Philippe Varin paved the way for possible discussions with Veolia but on four conditions, including an increase in its offer, currently 18 euros per share. Veolia, which would not consider raising its offer on Suez, for its part takes 1.5%.
Sanofi appreciates by 1.8%. Exane BNP Paribas has raised its target price on the share of the pharmaceutical group from 100 to 110 euros by maintaining its recommendation of “outperformance”.
Elis loses 1.4%. The industrial laundry group expects organic growth of around 3% in 2021, on the basis of improved trends in its markets from the second quarter, while its results were strongly penalized by the health and economic crisis. in 2020.
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