The CAC40 is very hesitant at the start of the session, evolving despite everything above 6,600 points (+0.10% to 6,625 points), while this symbolic threshold seemed threatened before the opening.
The rise in oil prices, to $112 a barrel of Brent, is however dampening the enthusiasm of investors, while the conflict in Ukraine does not suggest any diplomatic solution for the moment, after a weekend of fighting, particularly in the city. ravaged of Mariupol. This morning a shopping center was bombed in kyiv causing several deaths.
Investors take little heed of the Turkish foreign minister saying in an interview published on Sunday that the two countries were close to agreeing on key points. Diplomatic efforts will continue in the coming days. US President Joe Biden will travel to Poland on Friday to discuss the international response to the invasion of Ukraine, following a meeting in Brussels with NATO allies, his counterparts from G7 countries and leaders Europeans.
For his part, regarding the monetary tightening started, James Bullard, the president of the Federal Reserve of St. Louis, was particularly “hawkish” on Friday, considering it necessary to raise the main key rate of the Fed to more than 3%. this year, faced with a “particularly heavy” inflation burden. Mr. Bullard believes that the US central bank must “act quickly to respond to the current situation, otherwise it would lose credibility on its inflation target”. He spoke in favor of half-point increases at five of the six other meetings scheduled by the end of the year!
The New York Stock Exchange signed a 4th session on Friday and completed its best weekly performance since November 2020. Despite continued bitter fighting in Ukraine, Russia reported “progress” in negotiations even if an agreement still seems far between Moscow and kyiv. Crude continued its rally, to nearly $108 a barrel of Brent, on fears of a supply shock linked to sanctions against Russia.
At the close, the Dow Jones gained 0.80% to 34,754 points, while the broad index S&P 500 increased by 1.17% to 4,463 pts and that the Nasdaq Composite, rich in technology and biotech stocks, jumped 2.03% to 13,893 pts. Note that Friday was a “day of the three witches”, characterized by the simultaneous expiration of stock futures, and options on stocks and stock indices.
ECO AND CURRENCIES
United States :
– Chicago Fed National Activity Index. (1:30 p.m.)
– German Producer Price Index. (08:00)
The euro/dollar parity reached $1.1045 this morning. A barrel of Brent is trading at $110.92. An ounce of gold is traded at $1,921.
Vallourec (+4.50% to 10.64 Euros) has chosen Philippe Guillemot to succeed Edouard Guinotte at the head of the group. Following an external selection process led by a special committee of the Board of Directors, the Appointments and Governance Committee has decided to select the former head of Elior Group for the post of CEO. Philippe Guillemot, appointed for a term of four years, with immediate effect, will be responsible for accelerating the execution of the company’s global strategic plan by favoring a logic of “value in relation to volume” and by significantly lowering the threshold of profitability of the company, paying constant attention to cost reduction, operational efficiency as well as new business practices, in order to enable the company to pursue profitable growth. At the end of this process, by the end of 2023, Vallourec will have been transformed and will be better prepared to manage the evolution of a full economic cycle.
Sword Group (+6.35% to 47.75 Euros): bought the British Ping, investors welcoming the acquisition of the British Ping, a systems integrator and a provider of managed services. The company forecasts a turnover of around 13 million euros for 2022. This operation, which was expected since Sword had mentioned on March 10 an acquisition in IT services in Scotland, was imminent, notes Bryan Garnier. It will allow Sword to offer a more complete range of solutions to its customers.
Worldline (-1.65% to 41.23 Euros) immediately applied the international sanctions relating to Russia and intends to pursue them as much as necessary. The Group confirms that business volumes related to Russia are limited, representing approximately 1.5% of Worldline’s estimated pro forma 2021 annual revenue from continuing operations. This is mainly the result of its acceptance activities operated outside Russia, enabling domestic consumers to carry out online transactions with non-Russian international merchants. More generally, knowing that the group has no exposure to Ukraine, the other Eastern European countries bordering Russia and Ukraine represent around 1.5% of annual turnover. 2021 estimated pro forma of the Group on continuing activities, of which around half on transaction processing activities (Financial Services) in the Baltic countries. These activities are not impacted by the conflict in Ukraine.
THEY PUBLISHED THEIR TURNOVER/RESULTS…
Theradiag, Archos, Logic Instrument, Tipiak
THE LATEST “RECOS” FROM ANALYSTS…
Jefferies lowers his aim on Dry at 695 euros, against 800 euros and 750 euros on LVMH, against 850 euros. Jefferies remains at ‘underperformance’ on Volkswagen with a target adjusted to 130 euros.
HSBC switches from buy to ‘hold’ on TotalEnergies targeting a price of 51.40 euros, goes back to buying on EssilorLuxottica by targeting 210 euros, against 180 euros previously and when buying on ENI aiming for a course of 14.90 euros.
JP Morgan adjusts its target down from 47 to 38 euros on Alstom.
Pernod Ricard launches its global employee share ownership plan.
Alan Allman Associates : small reserved capital increase.
GeNeuro : first results of the ProTEct-MS study.
Fnac-Darty speeds up the repairability of products.