Posted 20 Dec. 2022 at 16:23
The Paris Stock Exchange canceled part of the morning’s losses (-1.31% on the low of the day) with an attempt to leap from the American markets, where in particular the S&P 500 and the Dow Jones are trying to rebound after four low withdrawal sessions consecutive. A streak that began on Wednesday evening and was triggered by the strong message sent once again by Jerome Powell at the last monetary policy meeting of the Fed on the continuation of the hikes in key interest rates for next year, with a pivot point much higher than expected by the operators.
Around 4:15 pm, the Cacao 40 it lost 0.31%, to 6,453.26 points, on a trading volume of 1.35 billion euros. In New York, the Dow Jones symbolically recovers by 0.17%, the S&P 500 by 0.12%, but the Nasdaq Composite yields 0.05%. The yield on 10-year bonds climbed 9 basis points to almost 3.68% after the Bank of Japan unexpectedly raised the ceiling on government bond yields of the same maturity. Yields on 10-year Japanese government bonds will now be able to fluctuate by 50 basis points in both cases from the 0% target, down from the previous 25 basis points.
« They widened the margin and I think it happened earlier than expected, deciphers Moh Siong Sim, strategist of the Bank of Singapore, according to the comments released by the Reuters agency. Whether this is a harbinger of what is to come in terms of monetary normalization remains to be seen. Perhaps the message is that the sharp decline in the yen we have seen earlier has disturbed politicians. »
The recession in question
Not enough to stimulate initiatives on the stock markets, while traders on Wall Street continue to fear a recession. Especially since the next few days, or even the next few weeks, are devoid of any important meeting in this area.
« We’d like to think all the bad news is there, believes Louis Navellier, a growth stock investing specialist. interviewed by CNBC. But we are navigating on sight, there are no further indications from the Fed before February. We will certainly not recover last week’s losses at the end of the year. Per Lawrence Gillum, Fixed Income Strategist at LPL Financial, “ the good news is that we are now nearing the end of these rate-hiking cycles, which could mitigate the headwinds we have seen in global financial markets this year ».
In the day’s statistical programme, producer prices rose less than expected in November in Germany, by 28.2% over a year, versus 31.1% expected and 34.5% in October. In the US, November housing starts held up better-than-a-month forecast (-0.5% vs. -2.1% expected) but building permits were down more than 11% from October, versus a slight decline of 2.1% expected. In the Eurozone, consumer confidence recovers from -23.9 to -22.2 points in December preliminary data, close to consensus forecasts (-22 points).
Engie’s sharpest drop in Cac 40
The biggest drop in Cac 40, Engie loses 4% after indicating that the legislation adopted in several European Union countries to limit electricity prices would impact its operating results for 2022 and 2023. The energy group will also increase by 3.3 billion euros its provisions for its nuclear fleet in Belgium. An impact linked to the conclusions of the triennial review carried out by the Nuclear Provisions Commission (CPN) of the country, explains the group. The French believe that most (2.9 billion) of this sum is unjustified and will present an amended proposal within 60 days.
On the other hand, banks continue to benefit from the prospect of higher rates. General Society gagne 2%, CreditAgricultural 1.2% et BNP Paribas 1.1%.
Elior (+5.3%) launched the project for the acquisition of the Multiservice branch of Derichebourg (-1%) as part of a fully remunerated transaction in new shares. At the end of this operation, the metal recovery group will hold 48.4% of the restaurateur’s capital. Daniel Derichebourg will be appointed CEO of Elior for a four-year term and will leave his operational duties while remaining President.
