(BFM Bourse) – The Paris market is heading for a sharp weekly recovery, driven by the technical rebound of US indices, despite warnings about household consumption in recent weeks.
With strong narrow market progress on Thursday due to the absence of many Ascension players (+ 1.78% with less than 2.8 billion euros traded), the Paris market is postponing an upward move of 0.84% to 6,464.55 points around 12 this Friday. : 35. afternoon Without a significant improvement in trade volumes, less than one billion euros have now been processed, many of those who were not in the trading rooms the day before took the “bridge” until the weekend.
At this rate, the CAC 40 could record a weekly gain of close to 3%, which would still be an unprecedented performance from March. At the same time, the US market should end the exceptional bear sequence, as the S&P 500 ended in decline during each of the previous seven weeks and the Dow Jones during the last eight (an unprecedented sequence since … 1932!). The Fed came this week to support the recovery by publishing a “minutes” of its last monetary policy meeting. This report showed that the governors of the central bank of the United States were discussing the possibility of suspending the rate hike sometime this year … Assuming inflation will provide some relief. In this regard, investors will closely monitor Friday’s publication of the PCE consumer price index, an indicator monitored mainly by the Federal Reserve System.
Luxury values on reflection
In the Paris market, it is mainly luxury stocks that are recovering from the lows after more than a year of decline. Kering (+ 3.5%) leads the flagship index charts, closely followed by LVMH (+ 3%) and Hermès (+ 2.6%). Alstom joins the prestigious trio with a gain of 3.3% with other shares in industry or raw materials (Eramet + 3%, ArcelorMittal + 1.7%, Legrand + 1.5% or Saing-Gobain + 1%).
In terms of luxury, Pernod Ricard climbed by almost 2%, which was also supported by a note from Bernstein (who also raised his views on the title and Rémy Cointreau, who won 2.5%).
A disturbing warning from the Maisons du Monde
Nevertheless, the Maisons du Monde (-25%) issued an alarming report on household consumption this morning and revised the target three weeks later, which the company nevertheless repeated in early May. Inflation in Europe is now expected to remain high until the end of the year, which will have an impact on the level of consumer confidence “, especially on demand in the furniture sector and decorations, says the Nantes group, major players such as Walmart or Target. At the moment, investors do not make a specific analogy …
In biotechnology, an industry whose foundations are mostly linked to individual clinical reports rather than economic conditions, AB Science benefited from a strong increase in opening after significant progress towards potential registration in Canada before reducing its profits to + 1.7%. A very small capitalization sector, Noxxon Pharma will literally fly away with the announcement of the upcoming presentation of data in the treatment of gioblastoma (brain cancer) at the time of the ASCO Congress.
Oil prices are stabilizing at around $ 114, while OPEC members and their allies are expected to be satisfied next week to reaffirm the trajectory of a slight resurgence in production, according to Reuters sources. Following a drop in production of around 10 million barrels per day in spring 2020, the expanded cartel aims to restore its previous production by a further 400,000 barrels each month, a rhythm that suggests that production will not be fully resumed for almost two years. In fact, several producer countries are trying to revive their production.
In the foreign exchange market, the euro returns 0.11% to $ 1.0717 after recovering by almost 4% over the past fortnight.
Guillaume Bayre – © 2022 BFM Bourse