The Paris stock exchange offers a nice recovery on Thursday, the rise in interest rates in line with the expectations of the US Federal Reserve led to great relief on Wall Street on Wednesday. Also on the business front, the session is busy with no fewer than six quarterly releases within the Cac 40. There will also be another matter of monetary policy next Thursday with the decision of the Bank of England, which should increase its repo rate. basis points to 1%.
At 9.30 am the Bedroom 40 increased by 2.04% to 6,526.44 points on a turnover of 470 million euros.
The Fed, as expected, raised its key key rate by 50 basis points to bring it within a range of 0.75% to 1%, and announced the launch of the process to increase the size of its balance sheet by more than $9,000 billion. to $47.5 billion per month for three months, before doubling to $95 billion. The tone of the press release, almost in line with March’s, also turned out to be less ‘hawkish’ than feared, allaying fears of significant rate hikes.
Not yet an increase of 75 basis points
The central bank expects inflation to return to its target of 2% without doing too much damage to the real economy and the labor market.” with an appropriate tightening of the monetary policy stance “. She chose further to ignore, as we expected, the GDP contraction in the first quarter and retain only the strong increase in final sales to households and businesses “says Paul Ashworth, US chief economist at Capital Economics.
During his press conference, Jerome Powell indicated that the Monetary Policy Committee is planning 50 basis point rate hikes at its next two meetings, but that it ” not actively considered » Increase of 75 basis points. He nevertheless clarified that if higher interest rate hikes “ are needed, we will not hesitate to apply them †
A harvest of good results
The Fed’s apparent moderation caused New York’s major indices to move higher, with the S&P 500 closing in on a 3% gain, its largest single-session gain since May 2020, and the Nasdaq Composite erasing its early losses . March 16.
In Asia, the CSI 300 in China fell 0.15% after a three-day shutdown due to Labor Day celebrations. The extension of the strict lockdown in Shanghai continues to weigh in as authorities look to initiate economic support measures to counter the health situation and poor indicators. The Caixin PMI for services fell to 36.2 points in China last month, the lowest level since February 2020. A figure below 50 reflects a contraction in activity.
Airbus jumped 7.8%. The aircraft manufacturer maintained its outlook for the 2022 fiscal year, while its financial results at the end of March exceeded expectations. The grouper also announced that it is preparing to increase monthly production of its A320 family to 75 by 2025.
ArcelorMittal advance of 3.5%. The steelmaker saw its results improve in the first quarter, mainly due to price increases. But the group warned it could expect a slight decline in global steel consumption this year.
Stellantis increases by 3.7%. The automaker reported revenue growth of 12% to 41.5 billion euros in the first quarter. The Reuters consensus estimated at 36.9 billion euros. For the current financial year, the group confirms that it expects an adjusted double-digit operating margin and positive cash flow.
very well valued at 3.4%. The electrical equipment manufacturer has confirmed its financial targets for 2022, after publishing publications that beat analysts’ forecasts for the first quarter and posted a net profit of 258.3 million euros, an increase of 13.3%.
Societe Generale earns 1.5%. Despite the uncertainties related to the war in Ukraine, the bank posted a profit in the first quarter that exceeded expectations. The bank’s net profit share amounted to 842 million euros, compared to 814 million a year earlier. Analysts had expected an average net profit per quarter of 337 million euros, according to the FactSet consensus.
A real drop within the Cac 40, Agricultural credit loses 2.3%. The green bank recorded a 47.2% decline in its net profit to 552 million euros in the first quarter, after having booked more than half a billion euros in provisions in its accounts related to its exposure to Russia and Ukraine.