What a disappointment! The Paris Stock Exchange, which had started this session in the most beautiful way, with a sharp rise of 2.3%, closed in red, falling 0.43% to 6,368.40 points… If Wall Street was its engine morning in Europe, the US position was also at the top of the volte view of the Cac 40 in the afternoon. An increase of 3.2% last night, in response to a stance that was considered less offensive by the US Federal Reserve, the Nasdaq Composite fell again this Thursday by 4.6%. The Dow Jones, up 2.8% the day before, fell just as much today.
” If you go up 3% and give up half a percent the next day, that’s quite normal … But having a day like we had yesterday and seeing it 100% reversed in half a day is just extremely rare “, surprises Randy Frederick, at the Schwab Center for Financial Research.
“The Fed would like to tighten more”
” Despite the tightening we have seen in economic conditions in recent months, it is clear that the Fed would like to see them tighten further.analyzes the side of Zachary Hill, head of portfolio strategy at Horizon Investments. High stock valuation is incompatible with such a outlook, so if supply chains do not recover quickly or workers return to the job market, any rally in shares is likely to be suspended if the Fed’s messages become more offensive again. »
On Wednesday afternoon, the Fed raised its key interest rate by 50 basis points. It seems to rule out the possibility of an increase of 75 basis points in the next two months. The central bank also announced a reduction of its balance sheet size by more than $ 9 trillion, starting in June at a slower pace than expected. It will be at $ 47.5 billion a month for three months, before doubling to $ 95 billion.
Macroeconomically, US non-farm payrolls fell 7.5 percent in the first quarter, unprecedented since 1947. Wall Street also awaits tomorrow’s report on April employment in the United States, but mainly next week, inflation data for the same month.
In this context, a large part of the large shares of the emblematic index deleted their initial profits. Airbus however, it stands out with gains of 6.2%. The aircraft manufacturer maintained its prospects for the financial year 2022, while its financial results exceeded expectations at the end of March. The group also announced that it is preparing to increase the monthly production rate of the A320 family to 75 by 2025, or 50% more than today.
Large increased by 1.5%. The electrical equipment maker confirmed its financial targets for 2022, after publishing accounts that exceeded analysts’ forecasts for the first quarter, creating a net profit of 258.3 million euros, up 13.3%.
TotalEnergies took 1.4% while OPEC + agreed to a marginal increase in production limited to 432,000 barrels per day.
Vice versa, Agricultural credit lost 4%. The green bank recorded a 47.2% drop in its net profit to 552 million euros in the first quarter, after recording in its accounts more than half a billion euros forecasts related to its exposure to Russia and Ukraine.