CAC 40 & Rest of the world – Some hope for Air France?

Back to Business! The french stock exchange should open on a slight decline.

CAC 40 – 8 weeks of gains?

After a Monday, which felt like a long weekend, back to business, with a lot of statistics to study and two results of the CAC 40 to analyze. Yesterday, the traders didn’t have much to work with. As a result, they focused on the rise of the euro, which slowed down certain excesses. The CAC 40 did not take advantage of the good trend on Wall Street. With this small slip, the index thus moved a little away from the annual high point in meeting (5.567 points last January 23).

Will the Paris Stock Exchange list an eighth week of gains, the first in five years? Nothing is less certain, given current concerns about trade (between China and the United States) and geopolitical (Middle East) tensions and the unstable political situation in Italy. The economic news is also not good either, the OECD having confirmed signs of a downturn in the euro area (decline in composite leading indicators). Today, the March industrial production and the GDP for the first quarter will be announced, which will confirm or not the European economic downturn.

Some non-expected statistics in the US. And a solid China industrial

There will be couple of American statistics also on the agenda today and they are expected by the traders without particular concern, because the health of the economy across the Atlantic is “always good”. While the quarterly earnings season is almost over in the US, the average increase in earnings per share for S&P 500 companies is currently 26%, according to Thomson Reuters calculations.

This morning, China reported quite solid industrial production in April, up 7% (consensus was +6.4%). Retail sales, on the other hand, were a little disappointed, with an increase of only 9.1% against an estimated 10%.

French banking disappointing

On the corporate front, Crédit Agricole was penalised, like Société Générale and BNP Paribas, by weaker performances in its market activities. Results also declined in retail banking. Overall, net profit for the first quarter rose by only 1.2% to 856 million euros, an amount below expectations (878 million according to consensus). We are with the purchase of the title to aim 18 euros.

Engie confirmed its annual targets after declaring a gross operating surplus of 6% organic growth in the first quarter. We are buyers of value with a target of 18 euros.

Some hope for Air France-KLM?

We’ll follow the Air France-KLM general meeting. The Board of Directors should appoint a temporary successor to Jean-Marc Janaillac. Worldline has announced an agreement to acquire payment services company SIX Payment Services. The transaction is valued at 2.3 billion euros. Finally, STMicroelectronics will also be in the spotlight for its investor day.

some hope for air france

Argentina in trouble

The President, Mauricio Macri, had to appeal to the IMF. An appeal to the IMF that obviously recalls the dark times of the Argentinian economy. Negotiations with the IMF have begun. They should be completed quickly. The idea for the president is obviously to reassure international investors even if it means losing some of his popularity among a population still traumatized by the austerity imposed by the IMF in 2001.

Stuff it all

Euronex sees 30% YoY Growth in first quarter profit. Facebook blocks 200 applications because of doubts in privacy. French police creates a country wide advertising campaign, first time since 18 years. Canal + joins Apple, there will be no more Canal + reciever, one will pass by the Apple TV box; The Turkish currency is at its record level of fall against the dollar after Erdogan decided to reinforce its control of the economy; The Mac Donald brothers opened their first restaurant in San Bernardino on May 15, 1940; North Korea has started to dismantle its nuclear test site; Catalonia has a new president, the independentist Quim Torra; It is necessary to stop using straws to drink because they pollute the oceans according to several NGOs; New record of the average financial wealth of a French household: 178,200 euros.

The big Rendez-vous of the day

  • US :
    • Empire State Index
    • Retail sales Index for April
    • NAHB house market Index
    • Business inventories Index
  • United Kingdom :
    • Unemployment rate
  • Euro-zone :
    • Industrial production in March
    • Flash estimate of first quarter GDP
  • Germany :
    • Zew index / investors confidence

Trade carefully and at your own risks


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