I would have liked to give you credible or, failing that, slightly mysterious and erudite explanations for the rise in the stock markets, but I can't find any. Am I therefore condemned to join the camp of those who do not have the instructions? Or worse, the one of eternal prophets of the stock market cataclysm? Fortunately not.
 
So, I still have a little explanation, which only goes so far, and can't explain it all. Here it goes: The reason equity markets are rallying is because the U.S. economy is still doing really well. What, that's it? Well, I might add that investors' incurable optimism is leading them to believe that China will eventually step up to the plate (to the pocket?) to revitalize its growth. Yet, we've been waiting for the Chinese to wake up for a while now. Perhaps we should add the great confidence of investors in the power of the Fed to solve all the world's problems: the economy, war, healing, the return of affection... Statistically, it has not always succeeded in making soft landings during periods of monetary tightening. Kepler Cheuvreux tells me that it has only managed 3 out of 10 since the 1950s.
 
Finally, I believe that a part of the financial community would rather die than invest in safe products, which allows me to bring up the TINA concept that I've already invoked a lot lately. For "there is no alternative", in this case to stocks. Initially, the expression was popularized by the jovial Margaret Thatcher, who was talking about the market economy. In the long run, there is no alternative to stocks, that's true and that's a movement that has always been true. So if you have the necessary phlegm and are sure of the quality of your choices, sleep well.
 
In the end, I find myself with four more or less credible justifications on my hands. But for the rest, the war continues in Ukraine, even if talks resume today and Kyiv has a ceasefire as its goal. China is experiencing a new wave of Covid, which raises fears of further disorder, especially in supply chains. Central banks are still caught between the hammer of inflation and the anvil of rates, unless the opposite is true. Multi-industry shortages are leading to multi-delays in production. And first-quarter corporate earnings are coming up in three weeks, with 2022 targets that are difficult to maintain given cost inflation and downward revisions to growth projections. In Europe at least, which also explains the slight decorrelation that is taking hold between the indices of the two continents. And I'm not even talking about the societal impact of the great inflationary upheaval, the consequences of which are likely to be more profound than we think.
 
Yesterday, Wall Street rose strongly, with Tesla as the driving force, gaining 8% after the announcement of a proposed stock split. Investors generally appreciate these splits because they increase liquidity and confirm a very positive trend in the share price. A sort of bonus for the winners in short.
 
This week, the most awaited statistic is the detailed employment data for March, for which we will have to wait until Friday. Meanwhile, oil is retreating on fears of a pandemic in China ahead of a Thursday OPEC+ meeting. The enlarged cartel is expected to discuss its supply policy for May, which is not expected to vary from existing targets, at last rumors. Finally, the bond market is calming down a bit with the US 10-year at 2.47%, although the 2-year remains close at 2.40%.
 
Economic highlights of the day:
 
Three indicators in the United States, with the FFHA home price index for January, the JOLTS job openings survey for February and the Conference Board consumer confidence index for March.
 
The dollar is down 1.16% to EUR 0.8989. The ounce of gold continues to decline to USD 1892. Oil is again giving up a lot of ground , with North Sea Brent at USD 106.48 and US WTI light crude at USD 100.1. US debt yields are falling to 2.47% over 10 years, while German debt is stabilizing at 0.58% over the same duration and the French OAT is posting at 1%. Bitcoin is up over USD 47,000.
On markets:
* Tesla- The carmaker, which closed Monday with an 8% gain on a proposed stock split, is up another 2.7% in premarket trading.
 
* Uber- The stock gained 0.5% in premarket trading after news reports of a possible partnership in San Francisco between the VTC giant and Flywheel Technologies, similar to the one with New York cabs.
 
* Fedex announced on Monday the appointment of Raj Subramaniam as CEO to replace Fred Smith, the co-founder in 1970 of the logistics and express delivery group. The stock was up 3% in after-hours trading.
 
* Lockheed Martin  - Canada has selected the U.S. defense group as its preferred supplier for 88 new fighter jets in a contract that Ottawa says could be worth more than US$15 billion. Shares are down 1 percent in pre-market trading Tuesday, but the stock had posted gains in seven of the past 10 sessions.
 
* Intel, Micron, Qualcomm- The U.S. Senate on Monday approved a bill providing $52 billion in subsidies for the semiconductor industry to increase its production capacity.
 
* UnitedHealth Group announced it has completed the purchase of LHC GROUP for about $5.4 billion in cash, or $170 per share, representing an 8.1 percent premium to its target's Monday closing price. LHC shares jumped 5% to $165.09 in premarket trading.
 
* General Motors - The joint venture between General Motors and Chinese automaker SAIC Motor kept production at its Shanghai plant going during the city lockdown by asking employees to sleep on the floor, two sources close to the matter said.
 
* Exxon Mobil failed to find oil while drilling in a new exploration area off Brazil's northeast coast, its partner Enauta Participacoes said Monday, the latest setback in the country for the U.S. group after mixed results from drilling in Opal and Tita (southeast).
 
* Chevron- An undersea gas pipeline linking Turkey to Israel's largest offshore natural gas field, Leviathan, operated by U.S. Chevron and Israeli companies NewMed Energy and Ratio Oil, could reduce Europe's dependence on Russian hydrocarbons, government and industry officials from both countries said.
 
* IGM Biosciences - The U.S. laboratory and Sanofi announced Tuesday a collaboration agreement to develop targets in oncology, immunology and inflammation.
Analyst recommendations:

Admiral: Barclays upgrades from equal-weight to Overweight targeting GBp 3050.

Ansys: Mizuho Securities initiated coverage with a recommendation of neutral. PT down 2.6% to $310.

Beazley: Jefferies remains Buy with a price target reduced from GBp 595 to GBp 520.

Floor & Decor Holdings: Gordon Haskett adjusts price target to $110 from $125, maintains buy rating.

HCA Healthcare: Wells Fargo Securities reinstated coverage with a recommendation of equal-weight. PT up 1% to $267.

NortonLifeLock: Morgan Stanley downgrades to equal-weight from overweight. PT down 0.6% to $28.

Plantronics: J.P. Morgan downgrades to neutral from overweight. PT set to $40.

Pinterest: Morgan Stanley downgrades to equalweight from overweight; cuts price target to $30 from $53.

Quantumscape: SMBC Nikko starts at neutral with $20 price target.

Royal Mail: Deutsche Bank downgrades from hold to sell targeting GBp 275.

Tesla: Wedbush's Ives views tesla's proposed stock split as 'smart strategic move,' reiterates outperform rating, $1,400 price target.

Universal Health: Wells Fargo Securities reinstated coverage of Universal Health Services Inc. Class B with a recommendation of underweight. PT down 6.9% to $139.

Wolfspeed: SMBC Nikko initiated coverage with a recommendation of outperform. PT up 20% to $140.