About lead rebounds, “techno” and finance

(Boursier.com) — On Tuesday, the stock market rebounded on Wall Street, backed by technology and financial stocks. Bond tensions have not discouraged investors who are currently prioritizing controlling inflation. Federal Reserve Governor Jerome Powell said on Monday he was ready to raise interest rates more aggressively as needed. This raised expectations for the bull market. Brent crude stabilized at around $ 115 and yields on 2-year bonds rose to 2.16%.

Lastly, Dow Jones Wide index recovered 0.74% to 34,807 points S & P500 Advance 1.13% to 4,511 points, Nasdaq Composite Index, Technology and biotechnology stocks are plentiful, up 1.95% to 14,108 points. Of the 11 S & P 500 sector indexes, 10 rose (-0.6%), excluding energy. Consumer discretion (+ 2.45%), telecommunications services (+ 2%), finance (+ 1.6%) and technology (+ 1.4%) led the session. Nike Increased 2.2% after a better quarterly account than expected.

Earlier that day, the European market also rose.Eurostocks 50 Earn 1.1%, DAX 30 In Frankfurt, CAC 40 increased by 1% and in Paris by 1.17%. In Asia Nikkei Rising 1.48% in Tokyo Complex shanghai It advanced by 0.2%.

The Fed wants to act “quickly” to curb inflation

In the bond market, yields continue to rise following Monday’s remarks by Jerome Powell.US Borrowing Interest 10 years of T-Bond It rose 8 basis points (bps) to 2.38%, the highest since May 2019. American “2 years old”Reflecting the short rate trend, it was around 0.73% at the end of December last year, but increased by 5bp to 2.16%. In Europe The Bund in Germany for 10 yearsEurozone benchmarks rose 4bp to 0.50%.

Therefore, Jerome Powell was strong in its first statement on Monday since last Wednesday, when the Fed started a bullish cycle in the face of rising inflation and raised interest rates by a quarter point. Powell said controlling inflation requires “quick” action, adding that the Fed can resort to higher-than-usual rate hikes in some circumstances.

“If we conclude that it is appropriate to act more aggressively by raising the federal funds rate by more than 25 basis points at one or more meetings,” he said.

Two increases of 0.5 points in May and June?

The Fed wants to convince the market to do what it takes to bring inflation closer to the 2% target, even though some analysts believe the reaction is delayed. Powell acknowledged that supply chain issues were underestimated and their solutions remained uncertain. He believes that a soft landing of the economy will continue to be possible, but will be complicated to achieve, especially as the crisis in Russia and Ukraine exacerbated the risk of accelerated inflation.

CME Group’s FedWatch tool is on the market on Tuesday night More than 66% chance that the Federal Reserve will raise its key rate by 0.50 points at the next meeting It will be between 0.75% and 1% on May 4th.As part of that, banks Goldman Sachs He said he currently expects two increases of 0.50 points in May and June.

EU split over Russian crude oil embargo

Oil prices (a key component of inflation) on Tuesday fell slightly after soaring 7% the day before in anticipation of the EU’s embargo on Russian oil, which is currently under discussion.

Price of 1 barrel of American light crude oil WTI (April futures contract expired on Tuesday) fell 0.3% to $ 111.76. Brent The North Sea area fell 0.12% to $ 115.48 (May contract). According to Reuters, the EU is divided on whether to impose an embargo on Russia’s oil and gas imports, and no action is foreseen in the short term.

gold It fell 0.4% on Tuesday to close at $ 1,921.50 an ounce (April Comex contract). On the currency side, Dollar index In the evening, it peaked at 98.48 points (-0.02%) against a basket of reference currencies. EUR It went 0.13% to $ 1.1029. the Bitcoin According to the Coindesk site, it increased by 3.3% in 24 hours and stabilized at about $ 42.5730.

On Tuesday’s Wall Street economics, the Richmond Fed’s regional manufacturing activity index was 13 in March, well above the balance-only consensus compared to a month ago. Therefore, the indicator reflects a sharp acceleration of activity.

New sanctions on Russia on Thursday, Joe Biden in Europe

Markets continue to monitor the war in Ukraine and its impact on businesses and markets. The Kremlin on Tuesday rejected Joe Biden’s accusations that Russia was ready to launch a cyberattack in response to Western sanctions. Moscow added that negotiations with Ukraine are ongoing, but Russia wants Ukraine to be more aggressive and substantive. The Kremlin also does not intend to publish the detailed elements of its request.

Westerners are preparing to “announce new sanctions against Russia and strengthen existing sanctions” on Thursday, Joe Biden’s national security adviser Jake Sullivan said at a press conference on Tuesday. .. The day before, Josep Borrell, head of European diplomacy, showed that the European Union was ready to impose new sanctions on Moscow, without presenting a timetable.

The Ukraine crisis will mobilize heads of state and government to host the summit in Brussels on Thursday and Friday. US President Joe Biden will also be visiting Brussels on Wednesday night to attend an extraordinary NATO, G7 meeting and meet with European leaders. Joe Biden then traveled to Poland on Friday to accept 2 million Ukrainian refugees. A bilateral meeting with Polish President Andrzej Duda is scheduled in Warsaw.

Value to follow

Nike (+ 2.2%) Sales in China declined, but increased, following higher-than-expected results and sales. According to Nike, US sports equipment giants had net income of $ 1.4 billion, or 87 cents per share, down 3.3% from 90 cents in the same period in 2020. However, analysts surveyed by FactSet expected a profit of only 71 cents per share. Revenues for the quarter ending February 28 totaled $ 10.87 billion, up 5% from $ 10.36 billion in the previous year and surpassing the consensus of $ 10.6 billion. Gross profit margin increased from 45.6% in the previous year to 46.6%.

Nike We welcomed the increase in sales and gross profit. This is due in particular to the increase in direct sales to consumers, and the new strategy the Group has shown is: Foot locker.. Therefore, direct sales increased by 17% over the past year. + 14% for direct sales and + 22% for online sales. Throughout the channel, Nike sales increased in all regions, while revenue in China (including Hong Kong) fell 5% to $ 2.16 billion. In North America, the group’s largest market, sales exceeded expectations, rising 9% to $ 3.88 billion, and Americans found a way back to stores as their health improved. Sales in the Europe, Middle East and Africa zones increased 7% over the year to $ 2.77 billion.

Alibaba It surged 11% after announcing a new two-year $ 25 billion share buyback program. The plan, which ends in March 2024, follows the previous $ 15 billion program. Hangzhou-based e-commerce giants are aiming to build investor confidence as stocks have fallen by two-thirds since their record highs in October 2020. And expansion plans. ” Toby Xu, Deputy Chief Financial Officer of the company, said.

Over the last 14 months, China has introduced radical new rules in the tech industry, often without warning. These decisions have shaken investor confidence and wiped out billions of dollars of capital from the country’s tech giants. However, the crackdown on this sector seems to be nearing its end. The latest statement by Xi Jinping and his deputy Liu He, who support the economy and the market, has been well received by businesses and has brought about a sharp recovery in the title of the local tech giant. Alibaba also announced this morning the appointment of a new independent director, Shan Weijian, chairman of PAG, an alternative asset management company. He will join the board’s audit committee and will replace Ericsson CEO Börje Ekholm at the end of the month.

You are here (+ 7.9%) This Tuesday, it is the largest investment in a German car factory, delivering customers the first 30 Model Y cars manufactured in a huge factory in Grünheide, Germany, which exceeds 5 billion euros. Launched the first European production center. Recent history. The new Tesla Gigafactory is considered by experts to be important to the group. Managing Director Elon Musk arrived in Berlin for the event on Monday and tweeted, “Tomorrow we are excited to hand over the first mass-produced car manufactured in Giga Berlin-Brandenburg!” Tesla’s new factory is located approximately 30 km southeast of the German capital and will accommodate more than 10,000 employees. Tesla said Tuesday that more than 3,000 workers have already been employed.

At full capacity, the plant produces 500,000 vehicles annually and more than 450,000 battery-powered electric vehicles, its German rival. Volkswagen Sold worldwide in 2021. It also produces 50 gigawatt hours (GWh) of battery power, surpassing all other German plants. For the time being, Volkswagen remains the number one electric vehicle in the European market, with a 25% market share compared to 13% for Tesla. Musk said the increase in production would take longer than the two years it took to build the factory. JPMorgan predicts that the site will produce approximately 54,000 vehicles in 2022, 280,000 by 2023 and 500,000 by 2025.

Prologis (-0.16%), an American investment fund specializing in warehouse and logistics building management has launched a $ 21 billion takeover offer MilewayA department that organizes logistics assets Black stone (+ 2.8%).