This "3 Witches" session is going well, with the CAC40 back in touch with the 7,000 mark this morning, and holding a +0.6% to +0.7% lead towards 6,995, after losing nearly 1.9% yesterday.
The 1-month result is a +8% rise, and that's also the annual gain.
The E-Stoxx50 is not to be outdone, with a gain of +0.4% to 4,110, while the DAX flirts with the 15,000 mark: this start to the year has no equivalent in 1 century.

On Wall Street, the US indices reopen slightly higher, with the Dow Jones defending the 33,000 mark, the S&P500 up 0.42% to 3,915 and the Nasdaq gaining 0.42% to 3,915.915 and the Nasdaq recovered +0.6% in the wake of Netflix (+8% with its 320 million subscribers, including +7.7 million subscribers in Q4 instead of +4.5 anticipated).
Over the past week, the great gap between Europe has widened, with the E-Stoxx losing just -1% compared with -3% for the Dow Jones (which has even turned negative since January 1).
Following Microsoft and Salesforce's announcement of 10,000 redundancies, Google/Alhpabet has announced 12,000 job cuts (5% of its workforce): all these giants of the tech and online advertising industries are thus acknowledging a slowdown in consumption which is already noticeable, and which could worsen in the United States.
Sales of existing US homes fell by -1.5%, below their May 2020 levels and even to their lowest since mid-2010: the impact of rising mortgage rates is being cruelly felt.
Over 1 year, second-hand home resales plunged by -17.8%, to an annualized rate of 4.02 million, according to seasonally adjusted data from the National Association of Realtors.

And US long rates are not going to come down any time soon: since Davos, several Federal Reserve and ECB officials had sent the markets a message of firmness and determination in their fight against inflation, a warning heard by market participants a week ahead of the Fed meeting.

Some strategists believe that markets have gone too high too fast at the start of 2023, and may now need to consolidate.

On the bond market, government bond yields have deteriorated sharply, with the US ten-year up +6.5pts to 3.4650%, our OATs down +11pts to 2.593%, Bunds up +10pts to 2.153% and Italian BTPs up +18pts to 3.952%.

Weakened by relative underpricing (-5Pts), the dollar lost a symbolic 0.1% against the euro, falling back to 1.083 to the euro.

In company news, Orpea (stable at 6.84E) announced that it had halted negotiations between a consortium of third-party French investors led by the Caisse des Dépôts et Consignations (CDC) and a group of unsecured financial creditors holding around 50% of its unsecured debt.

EDF announces the success of a senior bond issue for a nominal amount of two billion euros and £950 million, issued in four tranches with maturities ranging from nine to 30 years and coupons from 4.25% to 5.625%.

For the full year 2022, Boiron reports a 17.4% increase in sales to 534.2 million euros, including growth of 13.6% at constant exchange rates (+9.4% in France and +26.1% internationally).

Lastly, Argan (-3% at 77E) reported a 6% increase in recurring net income (group share) for 2022, to 118.9 million euros (or 5.2 euros per share), representing 72% of rental income, which also rose by 6% to 166 million.


Copyright (c) 2023 CercleFinance.com. All rights reserved.