Cac 40 quietly stopped in the middle of the day, rising 1.38% to 6,289.86 points, thus erasing its losses the day before in a market that is still very volatile. The good news has come, in particular, from China, where politicians have denied recent reports that general quarantine from Beijing is still under consideration and that the number of cases in Shanghai continues to decline. This would be a relief for the population and the local economy.
Markets also welcome recent statements by Fed Chairman Jerome Powell, who reiterated yesterday that raising the rate by 50 basis points at the next two meetings would be appropriate and that raising by 75 basis points not considered actively even if the central bank is willing to do more if inflation gets out of hand. Therefore, operators pay less attention to his other remarks, according to which he says he can not guarantee a soft landing for the economy under the policy of curbing price spikes and inflation will not return to 2%. without difficulty.
Consumer confidence in the viewfinder
At the moment, the weekly balance of the Paris Stock Exchange, which fell by 0.83% by Thursday evening, in a slightly positive area after three consecutive weeks of decline.
However, the statistics of the day will not necessarily bring real salvation. Except that the previous index of the University of Michigan, which measures the morale of American households, strongly violates the expectations of consensus, which expects a deterioration in the preliminary data for May to 64 points. to 65.2 points in April. ” In recent months, the University of Michigan index has been closely linked to the evolution of prices, especially commodity prices. Gasoline prices are falling from the peak in mid-March, but in modest amounts “, Oddo BHF reminded at the beginning of the week.
“Market that responds to emotions”
No, in the very short term, and although recent inflation data in the United States have only halved, albeit after a slowdown in one year for consumer and producer prices, but not as much as economists had hoped, there seems to be a rebound. be purely technical.
Because there is clearly no risk in the face of seeing the Fed accelerate rate hikes. ” We are in a market that responds to emotions, not according to rational logicsays Jim Lebenthal of Cerity Partners in an interview with CNBC. Every day we start with a recovery, and then the indices fall again. »
For Keith Lerner of the Bank of North Carolina Truist, even if they say we are in a bear market, there are always ups and downs that can be very strong. At least in the short term, and given how oversold we are (…), this will be a bright spot in this dark period we have just experienced. »
STMicro on the go
From the strongest shifts in Cac 40, STMicroelectronics continues its dynamics the day before and is gaining even more than 4%. The chipmaker unveiled its new medium-term goals on Thursday during Investor’s Day. It is aimed at stable income growth, while improving profitability. His ambition is to achieve a turnover of more than 20 billion dollars by 2025-2027 with a gross margin of about 50%.
Two car manufacturers Renault and Stellantis also in the TOP-5 per day, an increase of more than 3%. Veolia environmentwhich recovers after falling 6% the day before.
TotalEnergies is supported by Berenberg’s change in the recommendation from “hold” to “buy” to reach the target price of 58 euros.