CAC40: boosted by WStreet, tackles 4500, unemployment US 3.3Mns

( – The Paris Bourse is moving forward (+ 1% to 4,500) after having reopened down -2.5%, thanks to the surge of + 5.5% on Wall Street, with a Dow Jones which approaches 22.400Pts.

A strong progression favored by the implementation of a gigantic budgetary stimulus plan in the United States of $ 2,000 billion.

The rise on Wall Street is a pleasant surprise, especially after the publication of an increase of nearly 3.3 million people registered as unemployed last week, which is only a prelude to the much more spectacular statistics during for the next few weeks.

The S & P500 also climbed + 5.3% and the Nasdaq is approaching + 5%.

The US indices seem to be on track for their largest weekly increase since 1933.

In Paris, the 4,500 zone validates a rebound of + 22% on its floors in mid-March.

‘A delay on the level of 4.420 / 4.380 points would provide a first graphic basis, allowing the Parisian index to perfect its upward trend. Despite this positive trend reversal and in this difficult market context, the stabilization phases are often carried out on large point spreads. Caution remains advised, ‘analyze the Kiplink teams this morning.

Recall that American senators ratified overnight a plan to support the economy of some 2,000 billion dollars intended to cope with the disastrous economic consequences of the epidemic of coronavirus. But the vote of the ‘Covid Bill’ now falls into the category of ‘fait accompli’ and the favorable reaction of the stock exchanges could prove to be only temporary.

‘The measures now integrated, buyers should move away from the market,’ warn IG teams this morning, for whom a second wave of correction is now likely to take place, particularly in the event of an acceleration in the spread of Covid -19 in the United States.

In terms of statistical data, the business climate in France drops sharply in view of the INSEE synthetic indicator for the month of March: it loses ten points to settle at 95 and thus experiences its sharpest decline since the start from the series (1980).

Compared with those of February, business climates deteriorate very sharply in services (-14 points) and retail trade (-13 points). The one in industry lost three points, while the one in construction remained stable at a high level.

The most anticipated figure of the day was that published at 1:30 p.m. by the US Department of Labor: it recorded +3,283,000 new registered unemployment benefits last week, compared to 282,000 the previous week (281,000 in initial estimate and 220,000 the previous week).

Not surprisingly, the final figure for U.S. GDP growth stands at 2.1% year-on-year in the fourth quarter of 2019, according to the Commerce Department’s third estimate.

Economic growth was thus maintained compared to the 2.1% rate of the previous quarter, supported by household consumption expenditure, government expenditure, fixed residential investment and exports.

The PCE price index also increased 1.4% in the fourth quarter, compared to a 1.5% increase in the third. Excluding food and energy, this rate fell from + 2.1% to + 1.3% from one quarter to the next.

In today’s news, Airbus takes + 21% in the wake of Boeing (+ 15%). Unibail-Rodamco and Klépierre (-5%) again fell sharply on Thursday, returning close to their recent historic lows.

Suez announces ‘to take strong short-term measures to reduce its expenses and costs significantly, beyond what was initially planned’, and to reduce investments this year by around 15% compared to their level of 2019.

Casino (+ 1%) publishes normalized net profit, group share, down 35.4% in 2019 to 212 million euros, or 1.62 euros per share, and a decrease in current operating income 5.3% to 1,292 million (-3.1% at constant exchange rates). Revenues of the food retail group reached 34.6 billion euros, an increase of 4.2% organically and 0.9% in total after taking into account in particular currency and hyperinflation effects -1.9% and the scope effect of -0.8%.

Legrand (+ 5%) announces that it will suspend its 2020 targets published on February 13, which were, as announced, ‘apart from any major change in the economic environment possibly linked to the evolution of the world health situation’.

The Roche Bobois group today announced a net increase in its net profit in 2019, brought to 10.8 million euros, which corresponds in annual comparison to an increase of + 61.2%. Likewise, current EBITDA increased by + 13.2%, and for the 2019 financial year was 25.3 million euros. Revenues, for their part, increased by + 6.9% and reached 274.7 million euros.