After closing above 6,300 points yesterday for the first time since November 2000, the CAC40 reached a new annual high this morning at 6,351.96 points (+0.70%). A sharp rise supported in particular by the many publications of results intervened since the close of yesterday such as those of Total, Airbus, Facebook, Apple…
In terms of results, the session will be the busiest of the week with five quarterly publications in the Cac 40 (Airbus, Total, Capgemini, TF1, STMicroelectronics).
The results of three major components of the Dow Jones: Caterpillar, McDonald’s and Merck are also due before the opening of Wall Street. They will be followed in the evening by those of Amazon and Twitter.
The excellent results published last night by the American tech giants also played their part.
Facebook last night announced a near doubling of its net profit in the first quarter to $3.3 per share, compared to an expected $2.6, which should help it reach new highs on the stock market today.
Also, Apple reported revenue of $89.6 billion, compared to a consensus of $77 billion, boosted by demand for the iPhone 12 and sales of services. Its earnings per share came in at $1.40, compared with an estimate of just $1.
“The stratospheric results of the GAFAMs (Amazon is the last to publish this evening), the Fed which is in no hurry to reduce its asset purchases (without even mentioning a possible increase in key rates) or the speech full of enthusiasm by Joe Biden, will fuel the rise in equities (this Thursday)”, estimates Tangi Le Liboux, a strategist at the brokerage Aurel BGC.
On the Fed side, the decisions did not bring any new element yesterday. As expected, the Federal Reserve will continue its quantitative easing (QE) programme to keep long-term interest rates very low, despite encouraging recovery signals.
Jerome Powell said that “the time is not yet right” to start discussing a change in monetary policy despite an improving economic outlook.
Also on the agenda today is the release of the first estimate of US first quarter GDP in the early afternoon. Analysts’ forecasts range from +5% to +10%, with a median estimate of around 7%. Weekly unemployment figures for the US are also due at 14:30.
In terms of indicators, “today, it’s US growth for the first quarter of 2021 that should drive the markets,” notes John Plassard, head of investment at Mirabaud.
The European GDP estimate will be published tomorrow.
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