The ‘ascada’ of the CAC40 (-0.2%) between 6.028 and 6.093 (i.e. + 1.1% picked up on the lows of the day) illustrates this wonder.
Nothing, definitely nothing will come to an end of the Wall Street rally: after barely two and a half hours of quotes, the US indices are back in the green (except the Dow Jones … for now) and resume their course to records.
It is already potentially an 8th session of rise out of 9 which is looming, a 7th absolute record has just been recorded by the Nasdaq 9.734, and it does not seem to want to stay there (the S & P500 has just returned to its znith of the day before, new absolute record in the next few minutes!).
Wall Street is once again much more resilient (completely deaf and waterproof?) In the face of bad news from China than European places: the Euro-Stoxx50 which fell more than 1.3% this morning (3,799 at most low) ends -0.2% (3.847) … and in electronic transactions, the return to balance seems to have been achieved.
The news was not good this morning: the Chinese authorities have returned to their initial method of counting people ‘positive’ in the Covid-19 contamination test (in accordance with WHO recommendations) and the ‘corrective’ is rising brutal with nearly 15,000 new cases.
Far from having surpassed its peak last Wednesday, the epidemic is spreading and gaining momentum in China, but also Singapore … and Japan has just formalized the 1st death on its own soil.
The Chinese province of Hubei, picentre of the COVID-19 epidemic, reported Wednesday of 14,840 new confirmed cases and 242 new deaths, the worst daily toll since the pandemic began … and this is not the only region affected by the epidemic.
Factory closings are prolonged, airlines suspend China / foreign or USA / China traffic until the end of April.
Despite these very negative elements, the downturn in the markets appears very moderate and does not call into question the upward trend in force since October 2.
‘Graphically, this bullish phase remains in progress and should reach its peak in the resistance zone between 6,195 and 6,215 points. The different intermediate points 6.110 and 6.155 should not act as a strong resistance, but more as a brake on the upward trend ‘, analyze this morning the Kiplink teams.
Let us recall in fact that by winning over 0.8% yesterday, the Paris market had established an annual closing record of 6.104.7 points, very close to its znith of 2020 touched on January 17 6.109.8 points.
According to statistics, consumer prices in Germany increased by 1.7% in January on an annual basis, an inflation rate higher than that of 1.5% observed the previous month, according to Destatis which confirms therefore its preliminary estimate at the end of January.
After +0.1 point the previous quarter, the unemployment rate in France (excluding Mayotte) as defined by the ILO fell sharply in the fourth quarter of 2019, from 8.5% to 8.1% of the working population, according to INSEE data (but this is at the cost of a record number of radiation of 400,000 people, the return to employment only accounts for 20% of the apparent drop in unemployment) and in metropolitan France, it established 7.9%.
The day was also punctuated by the publication of weekly unemployment registrations which increased marginally, by +2,000 205,000 (the 4-week average remains unchanged 212,000).
Consumer prices rose only 0.1% in January from the previous month, according to the US Department of Labor, while economists predicted an increase of 0.2% on average.
In data (excluding energy and food products), inflation was + 0.2%, a level in line with market consensus.
Compared with January 2019, the price index increased by 2.5% in raw data – the highest annualized rate observed since that of October 2018 – and by 2.3% excluding volatile elements last month.
To fully understand the apparent invulnerability of Wall Street to bad news, it should be noted that the FED has injected almost $ 49 billion in the form of ‘repo’ this morning (daily injection) and $ 30 billion in the form of repo 14 days … while operators demanded practically double ($ 59 billion)!
In current events, Rexel (+ 9.8%) remains largely at the head of the SBF-120 ranking, far ahead of Legrand (its competitor), leader of the CAC40 with + 4.5%.
Legrand publishes an 8.2% increase in net profit for the group for 2019, 834.8 million euros, and an adjusted operating margin (2018 price) of 20.4% of sales, an improvement of 0, 2 point.
Pernod Ricard, although exhibiting China and Asia for many spirits still earns + 3.5%
Orange Group revenue increased + 0.6% to 42,238 ME in 2019 and + 1.1% in the 4th quarter, up from + 0.8% in the previous quarter. He has, in passing, confirmed his objectives for the current year.
La Franaise des Jeux (FDJ) announces a net result down 21.9% 133 million euros for 2019, after taking into account in particular the costs of IPO, but an EBITDA up 9% 346 million , a stable margin of 17.7%.
Consolidated sales of Airbus (-2.8%) rose 70.5 billion euros in 2019 compared to 63.7 billion euros in 2018. Consolidated order intake in 2019 increased 81.2 billion euros (55.5 billion euros in 2018), bringing the value of the consolidated order book 471 billion euros as of December 31, 2019 (460 billion euros end of December 2018).
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