Paris: Rebound after Favorable Measures in China-April 26, 2022 10:56

( Paris Stock Exchange launched its session significantly on Tuesday morning following the recovery of the Asian market, boosted by the latest measures announced by the People’s Bank of China to support the economy. The CAC 40 index rose 0.6% to 6491 points.

After ending with a 2% drop the day before, the Paris market seems ready to move forward, and investors have regained some risk preference after a series of strong developments in China.

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 the presentation of these measures, the Hang Seng Index in Hong Kong recovered almost 1% the day after the sharp fall, and the Nikkei on the Tokyo Stock Exchange ended the session with a rise of about 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.

For indicators, investors need to analyze durable consumer goods orders, the National Industrial Council Consumer Confidence Index, and new home sales figures this afternoon.

On the value side of Paris, Orange announced that it would 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 first-quarter 2022 sales were € 5.3 billion, up 33% in published data and 1.1% in 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.