2023-05-03 16:50:15
The flagship CAC 40 index rose 0.28% or 20.63 points to 7,403.83 points, the day after a sharp decline of 1.45%.
Investors are expecting another moderate hike in the US central bank’s (Fed) main interest rate, by a quarter of a percentage point, as in March, while hoping to hear more accommodating messages for the coming months.
For Valérie Rizk, economist at Hugau Gestion, the Fed’s rates are “very close to the peak, even the peak” that they can reach as part of the monetary institution’s fight against inflation.
In addition, “since March, we have seen the first signs of the transmission of this cycle of monetary tightening” to the economy and “these warning signs have come from American regional banks”.
After the bankruptcies of Silicon Valley Bank and Signature Bank, First Republic Bank was seized by the American authorities and bought out by JPMorgan Chase earlier this week.
These fears of a destabilization of the American financial system plead in favor of the hypothesis of a pause in rate hikes by the Fed.
For the European Central Bank, which meets Thursday, on the other hand “the diagnosis is not the same, the euro zone has an economic cycle behind compared to the United States”, explains Ms. Rizk.
“There is much less, if at all, sign of inflation that is starting to decrease for sure and there are fewer fears about the solidity of the European banking system,” adds the economist, who concludes that “ the ECB has more leeway to raise rates.”
Stellantis maintains its 2023 objectives
The Stellantis title lost 1.87% to 14.46 euros. The manufacturer maintains its 2023 objectives following the publication of a 14% increase in its turnover in the first quarter, thanks in particular to the improvement in the supply of semiconductors and price increases.
Record net profit for BNP Paribas
The BNP Paribas share price fell 1.18% to 56.29 euros after the announcement of record net profit of 4.4 billion euros in the first quarter, boosted by the sale of its American subsidiary Bank of the West, i.e. nearly 2.5 times more than in 2022 over the same period. Jefferies analysts highlight the difficulty of analyzing these results due to changes in their presentation.
Imerys badly received
The industrial minerals group Imerys published its quarterly results on Tuesday evening which revealed stagnation in its turnover in the first quarter compared to the same period of 2022. A net profit up 38.8% did not succeeded in convincing investors, the action lost 9.46% to 33.70 euros.
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