(CercleFinance.com)-Some cheap buybacks in the oversold market (skimming unprofitable securities in the portfolio before June 17th) will help the index recover (slightly), but this “4” It’s an unusually small amount in the “Witch of the Man” technical session. We conclude the second quarter, especially the first quarter. This has proven to be the worst in 70 years.
Paris Bourse recovered more than 1% this Friday morning and lost half of its rise. The index rose 0.45% to stay at 5920 points, recording a loss of -4.5% a week and -7.5% a month. 16.8% from January 1st.
To be on the safe side, the US Federal Reserve raised its major interest rate by 75 basis points for the first time since 1994 due to rising inflation in the United States.
As part of that, the ECB was forced to hold an emergency meeting to reassure the market about the risk of fragmentation of sovereign debt yields in the euro area. A list of specific elements related to the tools to be installed.
The ECB appears to be lagging behind more than ever after the Swiss National Bank’s (SNB) key rate has risen by 50 points.
Investors can no longer regain the taste of risk in the face of a surge in monetary tightening measures that could put the planet in recession (60 central banks have raised interest rates since January 1st).
Market participants are beginning to realize that accelerating the monetary tightening cycle can impact growth, first in the United States and then in other parts of the world.
Although recent revisions to financial markets have not spared the asset class, the main warning signal is undoubtedly coming from the fixed income market.
But the prominent easing taking place in the Treasury market this Friday should calm stocks, even if concerns are far from being completely alleviated.
Yields on all US Treasuries have fallen again, reaching 3.45% yesterday and then returning to about 3.215% in 10 years (compared to 3.305% on Thursday evening).
The second and fifth years have also receded from the previous day’s peak, confirming that it’s time to relax in the fixed income compartment.
In Europe, OAT decreased by -4 Pts towards 2.223% and The Bund decreased by -1.5 Pts towards 1.6805% … This reduced the “spread” of Italian BTP from -15 Pts to 3.71%. Can be reduced.
Today’s macroeconomic agenda looks slim with the announcement of the final inflation rate in the euro area, followed by the announcement of industrial production and leading indicators from the US Conference Board.
Sessions should also be marked by the expiration of many types of “futures” and options contracts. This is a conjunction commonly known as the “Four Witches” that promotes trading volatility.
In terms of values, Odd raised his advice on the Air France-KLM title from “underperformance” to “neutral” and lowered its price target from the previous 4.4 euros to 1.45 euros.
“Increased estimates specifically for fiscal year 2022 (+ 11% at EBITDA level, + 9% against consensus, EPS after capital increase down) to integrate improved yields in Q2 and Q3. “, Says the analyst.
Invest Securities confirms a neutral opinion on Dassault Systèmes shares. “If we believe that most of the deratings are behind us, our updated goal at 32E (against 36E) does not offer the possibility of returning to the purchase.”