The Paris Stock Exchange closed this session on Wednesday on a stable note (+ 0.07%, at 6,542.14 points). The Cac 40, which loses nearly 1% after an upward opening, finally gains 0.08%, to 6,542.14 points, as a season of publications by the companies of their accounts and / or revenues in the first quarter .
In France, LVMH was the first of the Cac 40 companies to take stock of their business last night. The luxury giant, owner of the Louis Vuitton and Dior brands, its main sources of profit, gained more than 2% on the stock market this morning before turning back (-2.6% at the day’s low), to finally end up slightly in increase of 0.5%. The French coast heavyweight saw sales growth of 29% in the first three months of 2022, a much better dynamic than financial analysts predicted.
Adam Cochrane, of Deutsche Bank, points out in particular that the turnover of 18 billion, up by 4 billion in one year, is 1.6 billion higher than his estimate. The meteorologist notes that LVMH’s activity was not affected by the war in Ukraine. And when it comes to containment measures in China, the largest market for luxury players? They only had an impact at the end of the quarter. The shock, on the other hand, could be more pronounced in the second quarter. The question of China was at the center of analysts’ questions during the LVMH conference call. In addition, there are fears at Invest Securities, “The second quarter should start to show signs of a more marked slowdown in a context where the momentum the growth of the global economy is declining. If LVMH is protected from inflation by its own pricing power, however, remains sensitive to economic fluctuations. “
Hermes And Dry, also up this morning, ended the session down 1%. LVMH’s release of Q1 sales also had an impact Pernod Ricardo (-2.49%) e Remy Cointreau (-4.4%) while, as reported within the Jefferies investment bank, the “Wines & Spirits” division of the number one luxury brand in the world recorded a “a smooth start to the year”.
Total Energies it gained over 1% supported by oil prices which started to rise again yesterday.
Stellantis he finished at the top of the rankings even after confirming, at the general meeting, the margin target for this year despite the worsening of tensions on raw materials.
A Wall Street, JPMorgan Chase, a component of the Dow Jones, fell 3%. The bank recorded a 42% decline in first-quarter profit, hit by a credit provision of $ 902 million and a $ 524 million loss related to the collapse of the market following Russia’s invasion of Ukraine. . However, bank net income exceeded expectations.
Quarterly copies of Black rock, Fixing And Delta Airlines on the other hand, they are welcomed with a lot of optimism, which allows American markets to progress despite the publication showing the historical run of producer prices.
Inflation will weigh on Tesco’s profits
The PPI index rose 1.4% last month and posted a record 11.2% year-over-year increase. Excluding food and energy, the increase reached 0.9% in one month and 9.2% in one year, against respectively + 0.5% and 8.4% expected by economists. The acceleration observed in the “core” data goes against the slowdown observed yesterday for the same component of consumer prices. In the UK, inflation jumped 7% in a year in March, unprecedented in 30 years.
Across the Channel, UK’s number one retailer, Tesco, has warned that its profits will decline this year due to inflation.
Against this backdrop of inflation, slowdown in consumption, scarce supplies and risks of gas shortages, Goldman Sachs strategists lowered their earnings per share estimates for Stoxx 600 companies to + 2% this year, versus + 8%. previous. Those at Barclays, for their part, point out that companies’ forecasts gain more importance as investors are focused on prices, margins, supply and demand issues.
In the United States, the profits of S&P 500 companies are expected to increase 4.5% over the period, according to FactSet estimates, the smallest increase since the fourth quarter of 2020, amid the coronavirus pandemic.