Paris: US index falls sharply, turning the tide-April 26, 2022 20:04

( rising up to 1.3% at the beginning of the afternoon, the Paris Stock Exchange was in Frankfurt (-1.2%) and E-Stoxx50 (-0.85%).

The US index was also clearly in the red in the middle of the session, with the Dow Jones down -1.8% towards 33,400, the S & P500 down -2.2% and the Nasdaq down 3.1% towards 12,600 points (after Tesla) more. This plummeted -11% while the operator was wondering how Elon Musk would fund the $ 44 billion acquisition of Twitter (his Tesla stock, Bitcoin). By selling?).

Only London saves furniture modestly by catching less than 0.1%.

In the morning, the market welcomed the Bank of China’s surprising decision to reduce the reserve requirement ratio for foreign currency deposits 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 2.7415% 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.

The Department of Commerce announced that new home sales in the United States fell 8.6% in March. That is, the amount of CVS per year was 763,000 (corrected) compared to 835,000 in February.

Median new home sales in the United States were $ 436,700 last month. With 407,000 units at the end of March, the inventory of new homes ready for sale is equivalent to 6.4 months at current flow rates.

Consumer confidence in the United States deteriorated slightly in April, a monthly survey by the Conference Board released on Tuesday shows.

The confidence index compiled by employers’ organizations fell from 107.6 in March to 107.3 this month, but economists predict a further significant decline, around 106 points.

The sub-index, which measures consumer judgment about the current situation, fell from 153.8 in March to 152.6, while the forecast sub-index rose from 76.7 to 77.2 last month.

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 (-9 points on OAT, -7 points on the Bund), the trend remains positive, 0.8100% and 1.3050% on a -3.5 point basis for the Bund and -1.5 points for the Bund, respectively. is.

T-Bonds are also dynamic, towards 2.7600% -6.5 Pts.

In terms of Parisian values, Orpea pulled up the back and fell 8.2%, about € 31.6, after the account was postponed, which 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 (-10.7% and significant 22E support suspension) announced sales of € 5.3 billion in the first quarter of 2022, 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 posted 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.