CAC40: Remains Close to 6300, US Indices Recover – 05/23/22 at 3:47 PM

(CercleFinance.com) – After rising to 1% shortly after opening, the Paris stock market has gradually lost height and is now gaining only about 0.1%, about 6,290 points, and investors are finally playing cautiously with the release of last week of weak indicators on the economic situation.

Futures contracts on New York’s major indices are rising between 0.8% and 1%, signaling a recovery from the trend in the first trades.

In this context, investors are still trying to find the right positioning between high inflation, phasing out of central banks and sluggish global growth.

In this regard, the business environment in Germany is improving slightly, according to the Ifo Institute index, which reached 93 in May, after 91.9 last month, thanks to a better assessment of the current situation while expectations remain more or less stable .

“The German economy is showing resilience in the face of the problems of inflation, bottlenecks and the war in Ukraine,” the Munich-based institute says, adding that “there is no discernible sign of a recession.

Other data on the economic situation is being scrutinized by investors this week: the latest European PMIs are scheduled for Tuesday and the Fed’s “minutes” are due on Wednesday.

Markets will also be looking at the development of monkeypox disease, a type of viral infection that the WHO warned against this weekend, as 92 cases have already been identified in 12 countries that are usually not accustomed to this pathology, the Danske Bank teams underline.

Despite bad news that tends to pile up, some strategists remain hopeful that investors are finally starting to buy into the dip, a mindset that has often shut down markets in the past.

“There are many companies today that are posting results well above pre-pandemic levels, while their stock prices are still moving at levels close to or below those of 2019,” we note in Raymond James.

In French company news, Sanofi announced Friday evening that the US FDA has approved its Dupixent (dupilumab) 300 mg once weekly for the treatment of eosinophilic esophagitis in patients 12 years and older and weighing at least 40 kg.

Getlink announces that Europorte, its rail freight subsidiary, will modernize its fleet of Euro4000 locomotives by investing in innovative ETCS (European Train Control System) track signaling technology.

Finally, Gaussin says it is strengthening its operations in North America by signing an exclusive 20-year agreement with Charbone Hydrogen for the local assembly and marketing of zero-emission APM and ATM vehicles in Canada.

Invest Securities downgrades its view on Carrefour from “buy” to “neutral” with a price target cut from EUR 22.4 to EUR 20.8, in the wake of lowered 2022 earnings expectations for both the half-year and the year for the French distribution giant. The research firm acknowledges that Carrefour remains moderately valued, at 11.7 times projected 2022 earnings per share, but notes that “downward pressure on stock market ratios is worsening its relative positioning.”

Leave a Comment