What a disappointment! The Paris stock market, having started this session in the most beautiful way, rose strongly by 2.3%, ended in the red, fell by 0.43% to 6,368.40 points… If Wall Street was the engine of the morning in Europe the American site was also at the origin of the Cac 40’s volte-face in the afternoon. Up 3.2% last night, in response to a stance deemed less abusive by the US Federal Reserve, the Nasdaq Composite fell 4.6% again this Thursday. The Dow Jones, which had risen 2.8% the day before, fell just as much today.
† If you go up 3% and give up half a percent the next day, that’s pretty normal… stunned Randy Frederick, at Schwab Center for Financial Research.
“De fed would like to sharpen more »
† Despite the tightening we’ve seen in financial conditions in recent months, it’s clear that the Fed would like to see them tighten further.analyzes his side Zachary Hill, head of portfolio strategy at Horizon Investments. Stocks’ high valuations are incompatible with such outlooks, so unless supply chains recover quickly or workers return to the labor market, any rally in equities will likely be postponed if the Fed’s messages turn offensive again. †
On Wednesday evening, the Fed raised its key interest rate by 50 basis points. It seems to rule out the possibility of a 75 basis point increase in the next two months. The central bank also announced the contraction in the size of its balance sheet, by more than $9 trillion, starting in June at a slower pace than expected. It will be $47.5 billion monthly for three months, before doubling to $95 billion.
On a macroeconomic level, the productivity of the US non-farm sector declined by 7.5% in the first quarter, a rate not seen since 1947. UNITED STATESbut especially next week the inflation figures of the same month.
In this context, much of the major stocks of the flagship index wiped out their initial gains. Airbus stands out, with a profit of 6.2%. The aircraft maker maintained its outlook for the 2022 fiscal year, while the financial results at the end of March exceeded expectations. The group also announced that it was preparing to increase the monthly production rate of the A320 family to 75. by 2025, ie 50% more than now.
very well rose 1.5%. The electrical equipment manufacturer has confirmed its financial targets for 2022 after publication bills higher than analyst forecasts for the first quarter, with a net profit of 258.3 million euros, an increase of 13.3%.
TotalEnergies rose 1.4%, while OPEC+ agreed to a marginal increase in production capped at 432,000 barrels per day.
Other way around, Agricultural credit lost 4%. The green bank recorded a 47.2% decrease in its net profit to 552 million euros in the first quarter, after having invested more than half a billion euros in its accounts. provisions related to the exposure to Russia and Ukraine†