(BFM Bourse) – The Parisian market is heading for a sharp weekly rebound, driven by the technical rebound of the American indices, despite the warning signals regarding household consumption in recent weeks.
In strong progression Thursday in a narrow market given the absence of many Ascension players (+1.78% with less than 2.8 billion euros traded), the Parisian market extends the upward movement this Friday by gaining 0.84% to 6,464.55 points around 12:35 p.m. Without business volumes improving much with less than one billion euros processed for the time being, many of those absent from the day before in the trading rooms having taken the “bridge” until the weekend .
At this rate, the CAC 40 could well record a weekly gain close to 3%, which would still mark an unprecedented performance since March. At the same time, the American market should put an end to an exceptional bearish sequence, since the S&P 500 had ended in decline during each of the previous seven weeks and the Dow Jones during the last eight (an unprecedented sequence since… 1932!) . The Fed came this week in support of the rebound through the publication of the “minutes” of its last monetary policy meeting. This report showed that the governors of the United States central bank had discussed the possibility of pausing rate hikes at some point this year… Provided that inflation provides a some respite. In this regard, investors will closely follow the publication on Friday of the PCE consumer price index, an indicator particularly monitored by the Federal Reserve.
Luxury values on the rebound
On the Parisian market, it is above all luxury stocks that are driving the recovery movement after having fallen to lows for more than a year. Kering (+3.5%) leads the charts of the flagship index, closely followed by LVMH (+3%) and Hermès (+2.6%). Alstom joins the prestige trio by gaining 3.3%, with other stocks in industry or raw materials (Eramet +3%, ArcelorMittal +1.7%, Legrand +1.5% or Saing-Gobain +1%).
Related to luxury, Pernod Ricard climbed nearly 2%, also supported by a note from Bernstein (who also raised his opinion on the title and on that of Rémy Cointreau, which took 2.5%).
A disturbing warning from Maisons du monde
Maisons du Monde (-25%) nevertheless delivered an alarming message this morning with regard to household consumption, revising to a three-week gap the objectives that the firm had nevertheless reiterated at the beginning of May. It is now “conceived that inflation in Europe will remain at high levels until the end of the year, which will weigh on the level of consumer confidence”, in particular on demand in the furniture sector. and decoration, indicates the group from Nantes, a few days after the warnings across the Atlantic from players as essential as Walmart or Target. For the moment investors do not make a particular analogy…
In biotech, a sector whose fundamentals are mostly linked to individual clinical news rather than economic conditions, AB Science benefited from a strong rise at the opening after a notable advance towards a potential marketing authorization in Canada, before paring its gains to +1.7%. Very small capitalization of the sector, Noxxon Pharma literally flies away with the announcement of the coming presentation of data in the treatment of the gioblastoma (cancer of the brain) at the time of the congress of the ASCO.
Oil prices are stabilizing around $114, while OPEC members and their allies are expected to be content next week to reaffirm the trajectory of moderately re-increasing their output, according to sources interviewed by Reuters. After a drop in production of around 10 million barrels per day in the spring of 2020, the enlarged cartel aims to restore its previous production by steps of 400,000 additional barrels each month, a rhythm implying that production will not be fully restored until after nearly two years. In fact, several producer states are struggling to revive their production.
On the foreign exchange market, the euro gives back 0.11% to 1.0717 dollar after a recovery of nearly 4% in the space of the last fortnight.
Guillaume Bayre – ©2022 BFM Bourse