(BFM Bourse) – The Paris market is selling back gains from the last two sessions in very low trading volumes on Tuesday, before an ECB meeting, new US inflation figures and the start of a new quarterly results season next week. afternoon
Returning to its pre-Russian invasion of Ukraine last Tuesday, the CAC 40 has since improved to the threshold of 6,700 points and still examines the evolution of the war at Europe’s gates and the associated sanctions against Moscow. At the end of the two bullish sessions, the flagship index of the tricolor market had returned to 1.22% at around 12:20 p.m. to reach 6,629 points, in a trading volume that continues to fade with barely a billion euros in purchases at this stage.
“It’s a transition week for the Paris Stock Exchange. Major economic announcements are scheduled for next week (inflation in the United States, European Central Bank meeting, etc.),” says Christopher Dembik, director of macroeconomics research at Saxo. Bank. “Despite the recovery in tech-related stocks in the United States, European indices should open this morning with no real trend, as investors have decided to ‘put aside’ the war in Ukraine for the time being,” John Plassard said. In the morning note, Deputy Director of Investments at Mirabaud. In fact, the CAC 40 moved close to equilibrium until 10am before turning red. The expert still wonders how long operators will ignore information from Ukraine.
Until the next international economic sanctions, to which the Kremlin is likely to be subject, after the discovery of massacres of civilians attributed to the Russian military in several towns on the outskirts of Kiev this week, including Boutcha, this week.
In terms of statistics, investors got their PMI index (from the survey conducted by IHS Markit and S&P Global) on private sector activity in the euro area on Tuesday morning. In France, this indicator stayed at 57.4 in March, in line with the “flash” forecast after 55.5 in February – the 50 mark threshold, the border between expansion and contraction, as a reminder. “Industry growth accelerated in March, the recent lifting of health restrictions, particularly the abandonment of the ‘vaccine transition’, bolstered activity and stimulated demand,” said Joe Hayes, senior economist at S&P Global. The same observation is in the eurozone, where activity in services has been bolstered by the lifting of measures linked to the pandemic. However, the survey indicates that the recovery seen in March is threatened by rising energy costs due to the occupation of Ukraine by the Russian army.
Unpaid bank securities
There is little news to report on the securities front in Paris this Tuesday, a week before the “official” launch of a new results season for the first quarter of 2022, specifically LVMH on Tuesday and Hermès on Thursday.
By industry, banking stocks were (still) struggling mid-day this Tuesday, with Societe Generale posting a notably 5.8% return despite the new rise in bond yields. Crédit Agricole also fell 4.2%, penalized by a change in AlphaValue’s recommendation – all adjustments to the recommendation or analysts’ targets for the day can be found here. Among other sharp declines, Veolia fell 5.7%, while Vinci and Eiffage fell 4.3% and 4.2%, respectively.
Orpea is making headlines again on Monday after 80 complaints from families of residents were filed with the Nanterre prosecutor’s office against the retirement home giant accused of “endangering others” and “murdering”. The title dropped 2.4%, once again trailing its rival Korian’s (-1.6%).
Among the smallest values, Medesis Pharma increased 59% at 12:15 a.m. after taking stock of its treatments for large populations contaminated or irradiated after a civil or military nuclear accident.
Oil sanctions await
Oil market operators predict that imminent sanctions against Moscow could further limit supply from Russia, resulting in further appreciation in oil prices (+0.6% to $108.2 for Brent, the highest in almost a week. ).
In the foreign exchange market, the single currency has returned below the $1.10 threshold (from +0.01% to $1,0974), ending its steep decline over the past three days.
Quentin Soubranne – ©2022 BFM Exchange