The resilience of the Paris stock market continues to surprise: the CAC40 managed to climb -1% towards equilibrium this lunchtime, despite -2% on the S&P500 and -2.5% on the Nasdaq (these 2 indices are modestly recovering +0.2% to +0.4% this Wednesday).
The Euro-Stoxx50 is down just 0.3% and the DAX -0.2% (like the CAC40): the business climate improved in Germany in February.
The index published by the Ifo Institute (based on a survey of 9,000 companies) rose by +1pt to 91.1 points this month.

While the current conditions component fell to 93.9 from 94.1 the previous month, the expectations component rose sharply from 86.4 to 88.5 in February.
This slight improvement in the index - calculated on the basis of responses from business leaders in the main market sectors - is mainly due to the improvement in the general and personal outlook for business in the services sector.

Earlier, investors learned that the German inflation rate, measured by the year-on-year change in the consumer price index (CPI), stood at +8.7% in January 2023, according to Destatis, thus confirming its preliminary estimate of February 9.

The main market mover, interest rates, did not affect the Paris index, which resisted the spectacular rise in bond yields.
On the Treasuries market, the ten-year yield exceeded the 3.95% threshold last night, setting a new high since last November: a slight easing to -3.5pts at 3.918%.

Whereas at the end of January, the Fed's final rate was forecast at 4.9% in June, markets are now expecting a final Fed rate of over 5.3% in July... and 25% of operators are now aiming for 5.60% (i.e. 4 further rate hikes between now and summer).

These forecasts are leading to a general resumption of pressure on rates, both short and long, with French 10-year OATs jumping towards 3% (-1Pt to 3.01%) and German Bunds tightening to 2.525% (vs. 2.535% the previous day).

Tonight's publication of the 'minutes' of the Fed's latest meeting will be of less interest than usual, as all the figures released since that meeting have come out ahead of expectations.


The dollar continues to climb, reaching around 1.0630/E.

In corporate news, Korian last night reported sales of €4,534m for fiscal year 2022, representing organic growth of 6.2% on the previous year. EBITDA came to 607 ME, up 1.6%, while net income attributable to equity holders of the parent stood at 52 million euros, down 54% on the same period twelve months earlier.

This morning, Danone reported a 3.6% increase in recurring EPS to 3.43 euros for 2022, despite a 1.5 point drop in recurring operating margin to 12.2%, with 'reinvestment in brands, product superiority, organizations and skills'.

Saint-Gobain announces that it has reached an agreement to acquire UP Twiga Fiberglass Ltd, India's market leader in glass wool insulation, with two production plants near Delhi and Mumbai.

Stellantis gains on the stock market this Wednesday following the presentation of 'record' results for fiscal year 2022 and the announcement of a 1.5 billion euro share buyback program.


Copyright (c) 2023 CercleFinance.com. All rights reserved.