CAC 40, DAX & Rest of the world : All hands on deck

Based on futures – CAC 40 expected to open at a limited high.

No relaxing for investors this Thursday. Not only are the markets are open, but there is a lot to talk about. Oil prices continued to rise overnight as a result of geopolitical tensions resulting from Donald Trump’s decision to withdraw from the 2015 agreement signed with Iran, Opep’s third largest producer. Exchanges of fire (Apparently 20 rockets) took place on the Golan Heights between Iranian forces and the Israeli army.

American black gold (WTI) prices exceeded $71 for the first time since 2014. The Brent was approaching $78. The release of U.S. Energy Information Agency (EIA) statistics also supported the movement: U.S. crude oil inventories contracted by 2.2 million barrels last week, much more than economists had expected (719,000 barrels).

In parallel, US Treasury yields exceeded the symbolic 3% threshold yesterday. As such, it will be interesting to follow the inflation statistics in the United States in the early afternoon.

soldier and helicopters

In this unstable context, it is indeed oil that continues to support global stock markets, as evidenced by the trend of Asian markets tonight and the future of European markets, which should start Thursday’s session higher.

The Axa share will be followed this morning after the announcement of the introduction price of Axa Equitable, which brings together the life insurance and asset management activities of the French group in the United States. A disappointing price since it is at $20 per share, below the announced range of $24 to $27. We see Axa as a strong long term buy.

Altice saw an increase in programming costs had a big impact and the net loss turned out to be heavier than expected over the first three months of 2018. We recommend to stay away from the security. TechnipFMC released its quarterly accounts tonight in the green ($91.5 million) versus a loss of $18.7 million in the first quarter last year.

The DAX gained 0.2 percent to 12,943 points, while the Euro-Stoxx-50 gained 0.3 percent to 3,570 points. Siemens had a big role to play. ProSieben Sat1 lost almost 10% market value in a single day. Whereas Steinhoff International who lost >90% of value after an accounting scandal in South Africa is slowly pacing to bankruptcy. We wrote an article about Steinhoff International couple of months ago. We hope that you did not followed our recommendation at that time.

All the best – the article above is not an recommendation, but an help for your stock analysis.

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