We buy everything! And we will see?
Good development in the stock market at the beginning of January! Almost an increase of 8.5% since the beginning of the year for CAC40, the psychological threshold of 7000 points has been exceeded. However, let’s remember last year, no joy. Especially since everyone wants to stay alert.
For the week, the CAC40 index ended +2.35%, closed at 7023.50 points.
CAC40 weekly trends
Expected results 2022…
In fact, the results of 2022 do not matter, what will count is the company’s forecast for 2023. And there it can be stuck, with a drop in spending. The season of quarterly corporate publications is launched in the United States. Today, several American banks, including Bank of America, Citigroup and Wells Fargo, have published their fourth quarter results. JP Morgan Chase, the world’s largest listed bank, announced today that it has increased its provisions to 1.4 billion dollars (1.3 billion euros) in anticipation of a mild recession.
Inflation is coming down!
Inflation is “obviously going in the right direction,” US President Joe Biden said. The level is in line with analysts’ forecasts but “since the publication, the level of the” stock market” indices has fallen slightly”, notes Alexandre Neuvy, manager of Amplegest. “Perhaps they were hoping for the best”, after they had already gone up a lot this week, he believes. Investors are now almost certain that the US Federal Reserve will raise rates by just 0.25 percent at its next meeting, its smallest move since the first hike of this rate hike cycle, in March 2022. In the bond market, this insurance reduced yield. . France’s 10-year bond, the benchmark for maturity, fell to 2.61%, the lowest since mid-December.
US consumer confidence improved in January, according to the first estimate of the index calculated by the University of Michigan, up 8.9 points to 64.6 for the month of January. The share of one-year inflation expectations fell to 4%, the lowest level since April 2021, against 4.4% in December and the 4.3% expected by analysts.
- Ubisoft: French video game publisher Ubisoft, “disappointed” with its recent performance despite the release of major games, has revised its financial targets for the full fiscal year 2022-2023 with sales falling “by more than 10% ” compared to the previous year due to the “deterioration of macroeconomic conditions”. The measure fell by 14.03% to 20.52 euros.
- TotalEnergies installs the largest biogas plant: The energy giant (+1.12% to 59.45 euros) announced the installation near Pau (Pyrénées-Atlantique) of the largest biogas plant in France, currently fed mainly by waste from for corn processing.
- Worldline completes an acquisition: The payment services group (+2.52% to 41.54 euros) announced that it has completed the acquisition of a 40% stake in Online Payment System, an online payment service provider in the Netherlands that provides payment solutions offered to more than a hundred on the market and platforms.
- Hermès: The end of the zero-Covid policy has once again pushed luxury values. Hermès ends up over 2%. Kering and LVMH gained 1.7 and 1.5% respectively.
- Auto sector stalls: In contrast, Renault and Stellantis were closed. Tesla (-4%) announced price cuts for some of its models in the United States and in several European countries, including Germany and France, which could force European manufacturers to do the same. In Frankfurt, Mercedes-Benz Group fell by 2.7% and BMW by 1.6%. The car Stoxx 600 marks the biggest sectoral fall in Europe.
- Bouygues: -3% after being downgraded from “underweight” to “underweight” by Morgan Stanley. In particular, the agency expects a sharp reduction in free cash flow generation in 2023 and 2024.