The Paris Stock Exchange is gaining a certain color the day after the session, which is mainly marked by a “flash” due to a mistake by Citigroup during the transfer of the order. This trend is due to the rebound on Wall Street at the end of Monday’s session, as well as good publications of companies in Europe. However, the environment remains marked by the strengthening of monetary policy around the world, trying to keep inflation under control.
In the bond market, German 10-year bond yields exceeded 1% for the first time since 2015, while French OATs reached 1.52% for the first time since August 2014. On Monday night, US borrowing exceeded the 3% threshold, the highest level since 2018.
Mid-session, Bedroom 40 increased by 0.57% to 6462.29 points with a business volume of 810 million euros. June futures on US indices fluctuate around equilibrium.
Bank of Australia before the Fed and the Bank of England
The Bank of Australia raised its key interest rate by a quarter to 0.35% this morning, for the first time since 2010, and warned that other increases would follow. The US Federal Reserve begins a two-day meeting of its monetary policy committee on Tuesday, which is expected to raise the Fed’s rate by half a point, while the Bank of England is expected to raise rates on Thursday. the rate on Fed funds is a quarter of a point of its interest rates.
In Asia, the session was marked by erratic movements on Tuesday in Hong Kong. Alibaba shares fell more than 9% after state-run CCTV accused a certain Ma of inciting subversive activities in Hangzhou, where the giant is headquartered. The action later erased its losses after the local police said it was a namesake. The Hang Seng index ended steadily (+ 0.06%). The markets of China and Japan are closed on Tuesday.
At the macroeconomic level, producer prices rose by 36.8% in March in the euro area in March, setting a new record. The consensus formed by Bloomberg expected growth of 36.3%. In the afternoon, two American indicators are in the lead: March factory orders and orders for durable goods.
BNP Paribas aims for a “solid trajectory” in 2022
BNP Paribas increased by 3.8%. The bank reported a 19% increase in net income in the first quarter after a sharp rise in its activity, especially in the financial markets. Revenues from the corporate and investment banking division jumped by 28%. The group reaffirmed the goals of its strategic plan for 2025, presented at the beginning of the year, and stated that it seeks to ” solid trajectory in 2022.
Agricultural credit and Societe Generale followed by growth of 2.1% and 2.9%, respectively.
TotalEnergies increases by 1.2% due to the progression of blood pressure in London. The British oil group benefited from rising oil and gas prices in the first quarter, which allowed it to strengthen its share repurchase program.
Alstom in advance by 4.6%. Citi expects the group to generate positive cash flow in the second half of 2022 and over the next few years. The analyst, author of the note, which is a “purchase” in value, notes that the group’s free cash flow has been at the center of the debate and its main shortcoming last year.
Among other analysts, Barclays and Deutsche Bank raised their target prices Remy Cointreau from 294 to 313 euros and from 274 to 290 euros, respectively. The first adheres to the idea of ”overweight”, and the second for “buying”. The action of the group of alcoholic beverages wins 3.5%.
It is unlikely that other cyclical actions will also resume yesterday. ArcelorMittal earns 3.1%, Renault 4.2% and Stellantis 2.3%.