A “bear creep market”? Maybe, but the Cac 40 held up perfectly, new to the market

A "bear creep market"?  Maybe, but the Cac 40 held up perfectly, new to the market

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It is rare enough to be emphasized. The Paris Stock Exchange managed to break away from an unfavorable American trend, where the falls of 12% of Amazon and almost 6% of Intel weighed this Friday on the Nasdaq Composite, with a fall of 1.59%. The relative stability of Apple (-0.3%) after its publication on Thursday afternoon allowed Wall Street to limit its decline, as the Apple brand is present in the three major indexes.

Quite a comparable development for the Dow Jones, which lost almost 1%, while the S&P 500, with a fall of 1.53%, recorded its largest monthly decline since the beginning of the Covid pandemic (-6%). The balance sheet is even heavier for the Nasdaq (-10%), also its biggest underperformance since March 2020.

Times have changed

For pilots, times have changed. During the Covid crisis, Market rallies were just as fast, analysis for CNBC Michael Shaul of Marketfield Asset Management, the current episode seems much more likely to create permanent departures and there is more fear this time for a creeping bear market (…) We are going through a long and painful correction to a more worrying situation “.

In New York, Amazon plunged 12% after announcing disappointing guidance for the current quarter. In times of high inflation, consumers reduce their costs, at a time when the group has increased its workforce and storage capacity, which have now exceeded needs. The semiconductor manufacturer Intel Loose 5.5%, poor data released raising fears of slowing PC demand. apple On the contrary, it rose 1.5%, supported by record results despite its warning of a risk of tensions in supply chains.

Rising labor costs

The day’s statistics were also mixed across the Atlantic, just days before the Fed meeting, which should lead to a 50 basis point or more increase in key interest rates to stem the current rise. of inflation. However, it was not reflected in household income and expenditure for March. The most followed item by the central bank, the “PCE core” of personal consumption expenditure, rose 5.2% in one year, slightly less than the 5.3% expected from the consensus. By contrast, labor costs rose 1.4% in the first quarter, beyond the expected 1.1%.

In this context, the Paris Stock Exchange is moving very well, with an increase of 0.39%, to 6,533.77 points, in a trading volume of 3.89 billion euros, despite the fall of more than 2% of Yolk, the only Cac 40 item to be released this Friday. Although the engine maker has confirmed its targets for 2022, the war in Ukraine will have an impact on the group’s operations. Saint Gobain, who did the same exercise last night, manages to gain 1.4% on his part. The housing expert remained guided in the first quarter by price increases and strong demand for renovations.

The founder of X-Fab is on fire

Airbus (+ 2.1%), Perno Ricard (+ 2.1% also), and car shares Renault (+ 2.7%) and Stellantis (+ 1.7%) offered the strongest increases in the emblematic index.

In addition to the flagship indicator, the best performance of the day goes to X-Fab (+ 7.8%). The Belgian foundry, which saw a 15% increase in its quarterly sales, says it is able to reach $ 1 billion in turnover in 2024, two years earlier than previously estimated. Deutsche Bank also raised its securities recommendation from “hold” to “buy”.

Vice versa, Σεβ fell 4.6%. The small home appliance maker reported growth and operating profit from operations in late March below analysts’ expectations. The health crisis in China could also affect second-quarter performance.


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