The Cac 40 in turmoil after the fall of Wall Street and Putin’s threats, Morning meeting

The Cac 40 in turmoil after the fall of Wall Street and Putin's threats, Morning meeting

The fall in global financial markets continues this morning, still fueled by fears of a slowdown in the Chinese economy, exposed to the “zero Covid” policy, and the tightening of monetary policy by the US Federal Reserve. Geopolitical tensions have also risen a notch following the cessation of Russian gas deliveries to Poland and Bulgaria, both members of NATO and the European Union. Moscow’s use of the energy weapon raises fears that other European countries could be targeted later after they refuse to pay for their gas imports in rubles. As a result, the euro hit $1.0635, its lowest level since April 2017, while oil and gas prices are on the rise.

Rebound in Chinese markets

Asian markets are generally lower this morning with the exception of China’s CSI 300, which rebounded 2.2% after ending at a two-year low on Tuesday. President Xi Jinping has announced new infrastructure investment projects to revive an economy hampered by the containment measures that are paralyzing several major cities in the country.

On Wall Street, the Nasdaq Composite fell nearly 4% on Tuesday to fall to its lowest level since November 2020, in a movement of defiance towards technology stocks in the face of the more aggressive turn taken by the Fed in terms of monetary policy. Alphabet, the parent company of Google, posted post-closing revenue below expectations for the first time since the outbreak of the pandemic as advertisers cut advertising spending amid worries about the economy. The title fell 3% in aftermarket transactions. Conversely, Microsoft did better than expected, boosted by the growth of its “cloud” division as many companies accelerate the dematerialization of their data with the modification of the way their employees work. The action rose 4.5%.

Numerous confirmations within the Cac 40

STMicroelectronics confirmed its revenue forecast for 2022, after posting results that exceeded its expectations and analysts’ expectations in the first quarter, despite the persistence of the Covid-19 pandemic in China.

Dassault Systems raised its 2022 targets after seeing its results improve in the first quarter. For the current year, it now forecasts, in non-IFRS data, an operating margin of between 33.4% and 33.7% and net earnings per share of 1.04 to 1.06 euros, an increase of 9% to 11%. He was previously counting on an EPS of 98 cents to 1 euro and on an operating margin of between 32.7% and 33.1%.

Liquid air confirmed its outlook for 2022, after seeing its sales grow by 29.1% to 6.59 billion euros in the first quarter, due in particular to price increases. According to a consensus provided by the company, analysts on average expected revenue of 6.76 billion euros.

Schneider-Electric confirmed its objectives for 2022, after the 15.9% increase to 7.57 billion euros in its turnover in the first quarter and despite a “ uncertain macroeconomic environment “. The FactSet consensus anticipated revenue of 7.33 billion euros.

Worldline posted a turnover of 939 million euros in the first quarter, against 841 million a year earlier, and confirmed its objectives for the whole financial year despite the impact of the war in Ukraine.

Michelin confirmed its operating profit and cash flow targets for 2022 after recording a 19% increase in sales in the first quarter, to 6.5 billion euros. despite a disturbed environment “. According to the consensus established by FactSet, analysts expected an average turnover of 6.16 billion euros last quarter.