(News Bulletin 247) – The CAC 40 ended up 1.1% on Monday, starting on good auspices a week rich in corporate results. The market nevertheless awaits with attention the publication of inflation in the United States, Tuesday afternoon.

Like other world markets, the Paris Stock Exchange showed a certain optimism on Monday, a relatively modest day in terms of information. The CAC 40 thus ended with an increase of 1.11%, passing the bar of 7,200 points to 7,208.59 points. The trend was supported by the opening in the green of Wall Street, which is driven by “tech” stocks, notably Microsoft (+4% at the close of the European market).

“Financial markets remain incredibly resilient in the face of lingering risks. Continued monetary policy tightening, inflation, disappointing corporate earnings and outlook, and energy market risks are currently not preventing not the markets of euphoric beings”, underlines Vincent Boy, market analyst at IG France.

The European Commission more optimistic

Investors also integrated the latest economic forecasts from the European Commission on Monday. Brussels is more optimistic for growth, expecting gross domestic product (GDP) growth in the euro zone of 0.9% this year against 0.3% for its previous forecast in November. In terms of inflation, the Commission anticipates an average rate of 5.6% in October, and 2.5% in 2024, against 6.1% and 2.6% respectively, in November.

The big meeting expected by the market, however, remains the publication of US inflation on Tuesday afternoon, a figure fiercely scrutinized by the US Federal Reserve (Fed). Economists surveyed by the wall street journal expect an inflation rate of 6.2% over one year for January against 6.5% the previous month, and a “core” rate – excluding food and energy prices – of 5.4%, against 5.7% in December.

“At first glance, the inflation shock seems to have subsided. This is the opinion of those who expect a rapid bearish pivot in monetary policy. The Fed is more cautious. Disinflation is certainly underway, as Jerome Powell has recognized in his recent speeches, but it is not uniform: very strong for energy, slower for most goods, non-existent for services”, underlines Bruno Cavalier, economist at Oddo BHF.

Wave of results

“Despite continued indices and investor optimism, the dollar and bond yields are rising, showing that some market participants are anticipating less rosy times ahead. The outlook for Fed rate hikes has also been rising for the past few sessions. , showing the possibility of seeing 3 new rate hikes (compared to 1 previously), before a potential break”, advances for his part Vincent Boy.

The week also promises to be rich in business results with the publication this Monday evening of the annual accounts of Michelin, which will be followed by a good number of residents of the CAC 40 (Kering, Hermès, Safran, Airbus, Renault, Carrefour, etc.) later.

L’Oréal (+3.7%) finished at the top of the CAC 40, regaining strength after a decline (-0.8%) on Friday following the publication of its annual results. Vinci followed (+2.95%) with Barclays in support, the British bank having raised its target price to 120 euros, against 113 euros, while maintaining its outperformance advice.

Orpea again showed volatility worthy of a penny stock, going from an increase of more than 15% at the start of the session to a drop of 16.3% at the close. The group once again warned that a massive dilution awaited its shareholders, on the occasion of the publication of its activity for the whole of 2022. Note that the first IPO of the year on the Parisian market, that of Lepermislibre, specialist in learning to drive online, was not a great success for its first day of trading, with a drop of 10% at the close.

The euro took 0.37% against the dollar at 1.0716 dollars. Oil contracts are giving way. The April contract on Brent from the North Sea lost 0.51% to 85.94 dollars a barrel while the March contract on WTI listed in New York lost 0.55% to 79.28 dollars a barrel.