(BFM Bourse)-Rising in the morning against the backdrop of technical rebounds, solid annuals and the first salvo of sanctions against Russia, the Paris market plummeted after noon. The Flagship Index finishes a few (-0.14%) sessions, an unprecedented sequence, six times in a row since the crash in March 2020.
It didn’t take long for the nervous and volatile Parisian market to erase all morning profits. After recovering to 1.7% in the morning, the barometer of the tricolor rating first lowered the gain and abruptly finished erasing shortly after the opening of Wall Street-the index opened in green and suddenly returned to the negative territory. Therefore, CAC 40 ends with 6,780.67 points, a 0.10% reduction in sessions for the sixth consecutive time, with a much smaller trading volume of € 4 billion than the previous day. If the bearish series contains some near-equilibrium closed sessions (including this Tuesday’s session-0.01%), it’s unprecedented since the March 2020 crash and much more about market tensions. I’m talking. However, at that time, the first announcement of health restrictions and confinement associated with the coronavirus caused an unparalleled violent fall, and CAC abandoned more than one-third of its value in a few weeks-at this stage. , It has dropped to 4.5% since January 1st.
But it looks like it’s ready this Wednesday between the “technical rebound” mentioned by Mirabeau investment specialist John Prasad and the first sanctions against Moscow in response to the Kremlin’s approval of sovereignty. was. Percentage of separatists in all regions of Lugansk and Donetsk in eastern Ukraine, considered light by the market.
In addition to Germany’s decision to suspend the approval of the controversial Nord Stream 2 gas pipeline between Russia and Germany, these are, in fact, primarily targeted at financial institutions and oligarchs. “The market has taken a sigh of relief that the sanctions weren’t so radical,” said Jeffrey Halley, an analyst at Oanda. “The United States, Europe and other countries are on their way to President Putin. Diplomatic method “. “The market will probably level off until the next move is seen,” he predicts from the Kremlin master.
Massive cyberattack in Ukraine
And in fact, the near-equilibrium recovery of the European index coincided with Ukraine’s announcement of a large-scale cyberattack targeting public sector websites, primarily government and provincial websites. Ministry of Foreign Affairs. After a while, Ukrainian troops showed that soldiers had been killed by bombardment by pro-Russian separatists at the forefront of eastern Ukraine. There were two announcements to quickly remind us that tensions have peaked in the region while Western countries are trying to coordinate their response. With this in mind, European Council President Charles Michel announced that a summit of 27 EU countries will be held in Brussels on Thursday night.
For the same reason as the European market, the New York index also had a morning rebound on Wednesday, but this has stopped. Shortly before 12:00 pm (East Coast time), the New York Stock Exchange was again in the red, down -0.1% for DJIA and -0.5% for Nasdaq.
Impressive benefits of Stellantis
In addition to the above factors, the Paris market can also rely on a-new-solid annual publication from its flagship this Wednesday. In particular, that of Stellantis, where the share price soared 4.5% (the best performance of the flagship index) when the current operating profit of 11.8% was announced in the first year of the group (as a result of the merger of PSA and Fiat Chrysler). , Exceeds the target of 11%. The manufacturer explained that it could expect a synergistic effect of € 3.2 billion and sales of highly profitable pickups and SUVs. The overall figures for the new entity over the past year are also impressive (sales of $ 152 billion, current operating profit of $ 18 billion (+ 95% for proformers), net profit of $ 13.4 billion, record high) and fact set. According to market expectations, especially those who were betting on an annual net profit of 11 billion euros. Renault, another automaker on the stock exchange, fell another 4.2%, probably suffering from high exposure to Russia.
Danone’s publications were also well received (+ 3.9%), and thanks to the “aggressive attitude towards prices” and the efficiency plans implemented, the Agrifood giant was able to stabilize operating profit in an inflationary situation. rice field.
As part of that, Sanofi announced the large-scale positive results of the anticovid vaccine developed at GSK in the United Kingdom (almost a year behind). Therefore, two major pharmaceutical companies are seeking regulatory approval for vaccines in the United States and the EU. Sanofi titles cost 1.2%.
Other than CAC, technical consulting group Alten (+ 0.4%) also reported solid results, with net income more than doubled (€ 207 million) and profitability “above pre-crisis levels”. Said. The current operating margin rose significantly from 6.1% to 10.9% of sales in 2021. Real estate developer Altarea (+ 1.5%) also exceeded the target, with the Net Ordinary Income (FFO) Group’s share rising 14.8% to € 264.4 million. When he announced that he was aiming for 10% growth.
Even closer to the end of this new season of the yearbook, new big salvos are still waiting for investors tonight with Eramet, Fnac Darti, Eiffage, Corian, Nexity and even Ipsos accounts.
On the energy side, oil prices will stabilize at the end of this Wednesday afternoon (+ 0.1% to $ 93.9 per barrel of Brent crude at around 6:05 pm), impacting trends on the Ukrainian front and supply from Russia. We are still monitoring. , The world’s second largest exporter of black gold. Finally, in the currency market, the euro fell 0.1% to $ 1.1315.
Quentin Soubranne-© 2022BFMBourse