(Photo credits: L. Grassin)
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(CercleFinance.com) – The Paris Stock Exchange (+ 0.2% to 5.560) emerges from red red after a little time of ‘digestion’ of the announcements of the European Central Bank (ECB).
She ‘did the job’, that is to say validate the expectations – and nothing but the expectations – without adding more.
It should be noted a new faith in the ‘flair’ of the market which had well anticipated both the enlargement of the PEPP envelope of + 500 billion euros then its extension at the end of 2021 (6 more months).
European markets suffer a little from the indecision of Wall Street which begins the session down Thursday (except the Nasdaq which resumes + 0.2% after -2% the day before) after the publication of a surprise surge in weekly registrations at unemployment.
Registrations for unemployment benefits rose sharply last week in the United States, according to figures from the Department of Labor, which counted 853,000 new cases, against 716,000 the previous week.
Consumer prices in the United States rose 0.2% in November from the previous month, according to the Labor Department, while Aurel BGC expected an increase of only 0.1%.
The market is also digesting the announcement by the European Central Bank (ECB) that inflation should remain negative at the end of 2020 and then 2021 before gradually recovering with the restart of the economy in the second half of 2021, knowing that the Covid will continue to increase. disrupt growth perhaps until June.
In the United States, some doubts are also resurfacing on the establishment by Congress of a new budget support plan of 920 billion dollars, which would have received the green light from Steven Mnuchin, but which would still not be approved by the Republican majority in the Senate.
Investors continue to wonder about the valuation considered high of the equity markets.
“In view of the still fragile health situation in Europe and very delicate in the United States, consolidations are possible in the cyclical sectors that have rebounded the most,” said Vincent Guenzi, the strategist of Cholet Dupont.
The Parisian manager recognizes, however, that investor appetite still seems far from being satisfied.
For the analyst from Cholet Dupont, the liquidities which are for the moment invested in treasury products represent colossal sums likely to constitute a reservoir which could flow into equities when confidence really rebounds.
In Paris, Total (+ 2.4%, leader of the CAC) announces the signing with Sempra LNG and IEnova of agreements finalizing Total’s participation in the liquefied natural gas export project of Energía Costa Azul (ECA LNG), located in the state of Baja California in Mexico.
Wendel announces that its Supervisory Board has decided to renew for four years, as of April 7, 2021, the respective mandates of André François-Poncet, as Chairman of the Management Board, and of David Darmon, as a member of the Management Board .
Credit Suisse reaffirms its ‘outperformance’ opinion on Airbus with a price target raised from 103 to 105 euros, the stock remaining its favorite value (‘top pick’) within the European aeronautics and defense sector.
Liberum reiterates its ‘buy’ recommendation and its price target of 40 euros on STMicroelectronics, the day after the presentation by the semiconductor group of disappointing medium-term prospects for its revenues and margins.
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