Emmanuel Macron’s victory overshadowed by the risk of tightening monetary policy, Morning meeting

The Paris Stock Exchange is set to continue to decline at the opening, the expected momentum after the expected re-election of Emmanuel Macron as President of the Republic is offset by the fall in Asian markets this morning and on Wall Street on Friday. These include the Fed’s more restrictive stance on monetary policy and the risk of a global economic slowdown amid the Covid-19 explosion in China.

Rising overnight, the euro destroyed its gains after the victory of Emmanuel Macron, who won 58.55% of the vote in the second round of the presidential election, according to the Interior Ministry. His rival Marine Le Pen received 41.45% of his vote, up from 34% in 2017, and Emmanuel Macron’s less than 66% from five years earlier. Faced with divided France, as always, the room for maneuver for the Elysee host now depends on the outcome of next June’s parliamentary elections.

Jerome Powell’s ghost haunts the markets

On Wall Street, the S&P 500 and Nasdaq Composite fell 2.8% and 2.6% on Friday, respectively, signing their worst session since early March, still under the influence of the Fed’s speech. The market has already made four consecutive increases in the Fed’s rate by 50 basis points to stop inflation. A possible increase in the ECB rate is also an option, as several members of the Board of Governors are calling for an immediate end to the asset purchase program ahead of a tightening of monetary policy this summer.

This morning was followed by Asian markets, which are still burdened by the risks of economic slowdown associated with containment measures in several major cities in the face of the outbreak of Covid-19 infections. Some areas of Beijing have also been affected by restrictive measures, raising fears of falling demand in the world’s second-largest economy.

Gafam gets into a fight

The beginning of the week is the busiest in terms of corporate publications since the beginning of the quarterly results season in the United States, in particular with the accounts of “technical” heavyweights, namely Meta Platforms (ex-Facebook). , Alphabet (Google), Apple, Amazon and Microsoft. In France, 16 Cac 40 companies are expected to publish their turnovers in the coming days.

The economy will also be in focus, including the Ifo business climate index in Germany for April this Monday, as well as the first estimates of GDP for the first quarter in Europe and the US, as well as inflation across the Rhine in April. The evolution of prices will also be tracked across the Atlantic by the PCE’s Personal Consumer Expenditure Index, the inflation rate most closely followed by the Fed.

Living recorded a 13.4% increase in turnover in the first quarter (+ 7.9% at constant exchange rates and perimeter), thanks to the dynamism of subsidiaries Canal + and Havas. The media and entertainment group did not provide instructions for the current financial year.

Technip Energies generated regular operating profit of 17% in the first quarter and profit of 6.6% compared to 5.9% a year ago. These figures are higher than expected. For the whole year, the company expects, excluding activities in Russia, adjusted revenue from 5 to 5.5 billion euros and adjusted operating margin of at least 6.5%.

Among the notes of analysts, Deutsche Bank raised its recommendation on Engie from “hold” to “buy”.