CAC40: in heavy drop after rain of anti-Russian sanctions – 04/05/2022 at 17:01

( – The Paris stock market remains heavy (-1.7%) at around 6,620 points, weighed down by the auto and banking sectors (-5.5% on average) after new sanctions against Russian banks banned from trading in Europe operate (especially VTB): this break will be expensive for the entire sector, the ‘counterparty risks’ are exacerbated.

Europe also announces a ban on its ports and even its maritime domain for Russian ships, and our roads to Russian trucks (which mainly concern Eastern Europe) and then an embargo on coal, Russian wood.

The export of semiconductors will also be stopped.

The US Treasury Department is also banning Moscow and Russian companies from paying off their dollar-denominated debt, amounting to imposing an artificial “default” situation.

The Paris stock market is largely the red lantern in Europe as the Euro-Stoxx50 yields only -1.3%, Frankfurt -1.1% and London even 0.1% higher.

Wall Street is consolidating slightly with the S&P500 at -0.4%, the Nasdaq yielding -1.5% (from +1.9% the day before).

Markets are also beginning to fully assess the consequences (massive shortages of spare parts, materials) of the news from China, where more and more major cities are being hit by restrictive measures to contain the spread of the Omicron variant.

“The economic costs of the zero Covid strategy are increasing and are likely to exacerbate material and supply bottlenecks in Germany as well,” warns Commerzbank.

In terms of statistics, the session was dominated by the release of S&P Global’s various composite PMI indices, not to mention French industrial production (down slightly).

In the United States, the trade deficit in February was $89.2 billion. Economists had after 89.2 . a deficit of $88.5 billion forecast

in January (revised from 89.7 billion).

The Institute for Supply Management (ISM) for services in the United States stood at 58.3 in March, compared to 56.5 in the previous month.

The S&P Global services index is also making progress, rising from 56.5 in February to 58 last month.

According to INSEE, production in France fell in February in manufacturing (-0.5% after +2.2%) as well as in manufacturing as a whole (-0.9% after +1.8%).

The S&P Global Composite PMI of total activity, which recovered from 55.5 in February to 56.3 (number slightly revised from a preliminary estimate of 56.2), points to an acceleration in the increase in activity from the French private sector in March.

On the yield side, the tension is palpable at +10.1 points against 1.1120% on our OATs, Bunds posting +6 points against 0.5800%, Italian BTPs +13 points against 2.208%.

In the equities news, Sté Générale unscrews -6%, Crédit Agricole with -5.9%, BNP-Paribas with -4.5%.

Car manufacturers are attacked again with Renault -6%, Faurecia -8%.

Casino indicates that it has sold the balance of its interest in the real estate company Mercialys, or 10.3% of the capital, an operation that yields a yield of 86 million euros for the food distributor.

Icade announces that on April 1, it has completed the sale of the Le Millénaire 4 building in the Parc du Millénaire (19th Paris) for 186 million euros, bringing sales in the Parc du Millénaire to almost 740 million.

Thales Alenia Space, a joint venture of Thales (67%) and Leonardo (33%), announces a partnership with Microsoft to explore the development of new capabilities in space computing and geospatial observation tools.

UBS reaffirms its buy recommendation for Alstom with a target price cut from EUR 47 to EUR 44, a new target that still leaves a growth potential of 109% for the transport equipment manufacturer title.

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