(CercleFinance.com)-The Paris Stock Exchange recorded a sharp rebound (Eurostocks 50 was happy with + 0.7%, compared to + 1.1% to + 1.3%), well above 6,500 points. I have reinstalled CAC 40. Recovery of the Asian market backed by the latest economic support measures announced by the People’s Bank of China.
After finishing a 2% drop the day before, the Paris market was able to confirm the solidity of the support at 6.420: the buyer “paid” this support, so it hit a low of the year (5.850 / 5.880). There is no risk of recurrence. ..
This trend is largely supported by the Bank of China’s surprising decision to reduce the reserve requirement ratio for foreign currency deposits by 1 percentage point from the current 9% to 8% from May 15.
The People’s Bank of China said in a statement that the move was aimed at strengthening the foreign currency liquidity management of financial institutions.
Beijing has also released a set of guidelines aimed at resolving bottlenecks, stimulating consumption and addressing the impact of the resurgence of the Covid-19 epidemic in the country.
Following these measures, the Hang Seng Index recovered almost 1% the day after the sharp drop (-4%), and the Tokyo Stock Exchange Nikkei ended the session on the order of 0.6%.
This general climate mitigation should benefit equities, especially in the technology sector. This is because major Apple, Alphabet, Amazon, Meta, and Microsoft are preparing to publish their results in the coming days.
Another sign of lower tensions is that yields on 10-year Treasuries have returned to around 2.8260% after peaking in multiple years last week.
The stock market should also benefit from a new surge in terms of M & A, which provides several reasons to start buying again.
Twitter announced last night that it had agreed to sell it to Elon Musk. Elon Musk offers a 38% premium to dominate the company with an estimated $ 44 billion in transactions.
The purpose of the operation is to remove the microblogging site from the rating.
As for indicators, investors have just discovered orders for durable consumer goods. In the United States, it increased by 0.8% in March, especially due to the increase in communication equipment and automobiles. According to statistics released on Tuesday, the Department of Commerce released it.
However, following a 1.7% contraction in February, this figure is lower than economists expected to rebound from 1.1% to 1.3% last month.
This one-month figure is primarily explained by a 2.6% increase in orders for computer equipment and electronic products.
We need to look at the Conference Board’s Consumer Confidence Index and new home sales.
The euro has just sunk to a new annual low (less than 1.0670) and returned to a low of 1.0640 / $ at the end of March 2020.
On the interest rate side, after a strong improvement on Monday (-9Pts on the Bund and -7Pts on the Bund), the trend remains positive, at -3.5Pts on the Bund and -2.5Base Pts on the OAT at 0.813% and 1.3000%, respectively.
T-Bonds are also dynamic, towards 2.7600% -6.5 Pts.
In terms of Parisian values, Saffron stands out at + 4%, and Orpea will close the march symmetrically at -5% towards 32.6E after the account’s disclosure has been postponed. This never pleases the market.
Orange announced that it will benefit from growth in Africa and the Middle East (+ 8.7%), with first-quarter sales up 0.7% to 10,582 ME. “The growth of retail services is much higher than the decline in services to operators (wholesale),” the group shows. EBITDAaL was up 1.0% to 2,620 ME in the first quarter.
Faurecia’s sales (-4% and critical 22E support testing) were € 5.3 billion in the first quarter of 2022, up 33% for public data and 1.1% for organic data. Sales include € 1.1 billion in the first two months of the integration of Hella (February and March).
The Lagardère Group generated € 1.304 billion in revenue as of March 31, 2022, an increase of + 44.0% in reported data and + 38.0% as well. Lagardère Publishing generated revenue of € 554 million. This is + 8.7% on a report basis and + 1.4% on a similar basis.
The M6 Group recorded consolidated sales of € 322.5 million in the first quarter of fiscal year 2022, up 8.7%. Multimedia advertising revenue increased by + 5.3%, driven by television (linear and non-linear). The television sector recorded + 7.5% advertising revenue compared to the first three months of 2021.