Gone is the rise of the last two sessions, the prospect of a net tightening of monetary policy from the fed sent a chill in the financial markets and overshadowed a promising start to the quarterly earnings season for companies.
Chairman of the US Federal Reserve Jerome Powell said that a half-point increase in the Fed funds rate comes on the table of the May FOMC meetingadding that it would be appropriate” act a little faster Speaking in the context of a debate on the global economy organized by the International Monetary FundJerome Powell indicated that such increases are possible and that he favors the idea of large-scale actions. The effect was immediate: the S&P 500 ended Thursday evening at 1.5% and the Nasdaq Composite at 2.1%.
Increases by 75 basis points?
These words are interpreted by investors as promising at least two half-point increases in May and June. Nomura’s analysts expect their second leg to rise 75 basis points in June in July, the first time since 1994, after tightening by half a point in May.
The US central bank therefore plans to contain the rise in inflation, fueled in part by the invasion of Ukraine by the Russia, which is holding back activity as the labor market begins to come under pressure. The containment measures blocking several Chinese cities are putting a new drag on the global economy and, given the sharp slowdown in activity in the country’s ports, could increase inflation in the coming months.
The tightening virus does not spare the European Central Bank. Several of its leaders have hardened their rhetoric. Vice-President Luis de Guindos now believes that the end of the asset purchase program should take place in July, while Pierre Wunsch, the governor of the National Bank of Belgium, ECB could bring its key rate slightly above zero before the end of the year.
Renault confirms its targets
Renault has confirmed its annual targets as revenues fell 2.7% in the first quarterdisadvantaged by the shortage of semiconductors and the decline in its activity in Russia.
Essilor Luxottica announced have achieved strong growth of 38% of turnover in the first quarterfueled in particular by the integration of the Dutch distributor of optical products Grandvision.
barrier published revenue up 27.4% year-on-year in the first quarterwith strong performances from Yves Saint Laurent and smaller brands compensating for slower growth at Gucci.
vinci posted revenue growth of 26% in the first quarter, driven by the increase in highway and airport traffic.
Casino thanks to Brazil revenue growth again in the first quarterits second market, while the contraction of its activity in France slowed down.
