This is rare enough to be emphasized. The Paris Stock Exchange managed to get out of the unfavorable American trend, when on Friday on the Nasdaq Composite fall 12% of Amazon and almost 6% of Intel fell by 1.59%. Apple’s relative stability (-0.3%) since its release on Thursday night allowed Wall Street to limit its decline, as the apple brand was present in three major indexes.
A fairly comparable evolution for the Dow Jones, which lost almost 1%, while the S&P 500, which fell 1.53%, recorded the largest monthly drop since the beginning of the Covid pandemic (-6%). The balance is even heavier for Nasdaq (-10%), its highest low performance since March 2020.
Times have changed
For operators, times have changed. During the Covid crisis, market rallies were as fast as analysis for CNBC’s Michael Schaul’s Asset Management Marketfield, the current episode looks much more likely, leading to a prolonged setback, and this time more fear of a creeping bear market () We are moving from a long and painful correction to a more anxious situation “.
in New York, Amazon fell 12% after announcing disappointing forecasts for the current quarter. In times of high inflation, consumers cut their spending at a time when the group has increased its workforce and storage capacity, which now exceeds demand. Semiconductor manufacturer Intel free 5.5%, published bad figures that cause fears of slowing demand for PCs. apple on the other hand, increased by 1.5%, supported by record results, despite warnings about the risk of tension in supply chains.
Rising labor costs
Moreover, the day’s statistics were mixed across the Atlantic a few days before the Fed meeting, which should raise key rates by 50 basis points or more to stem the current surge in inflation. However, this was not reflected in household income and expenditure in March. The component most followed by the central bank, the “core PCE” of personal consumption expenditures, grew by 5.2% over the year, slightly less than the 5.3% expected by consensus. Conversely, labor costs rose 1.4% in the first quarter, exceeding expectations of 1.1%.
In this context, the Paris Stock Exchange is performing very well, rising 0.39% to 6533.77 points, with trading volume of 3.89 billion euros, despite falling more than 2% saffron, the only component of Cac 40 to be released this Friday. If the engine manufacturer confirms its goals by 2022, the war in Ukraine will affect business groups. Saint-Gobain, who performed the same exercise last night, managed to score 1.4%. In the first quarter, the housing specialist was driven by rising prices and high demand for repairs.
The founder of X-Fab is on fire
Airbus (+ 2.1%), Pernod Ricard (+ 2.1%), as well as car shares Renault (+ 2.7%) and Stellantis (+ 1.7%) suggested the strongest growth of the flagship index.
In addition to the flagship index, the best performance of the day gets X-Fab (+ 7.8%). The Belgian foundry, which recorded sales growth of 15% for the quarter, claims that it could reach a billion dollars in turnover in 2024, which is two years ahead of the previous estimate. Deutsche Bank has also raised its name recommendation from “hold” to “buy”.
And vice versa, Seb fell by 4.6%. At the end of March, the manufacturer of small household appliances received growth and operating profit below the expectations of analysts. The health crisis in China may also affect the results in the second quarter.