Stock markets in North America continue their rebound shy Thursday in mid-session, despite the slowdown in exports to China in April and low employment growth that is emerging in the United States.
The markets were mostly down since the beginning of the week.
Around 11:40, Toronto is 0.6%, while New York 0.45%, with the exception of Nasdaq, which has stalled.
The Canadian dollar ekes out a living on the top and bottom of parity with the U.S. dollar. The dollar fell below parity since Tuesday.
In the U.S., initial claims for unemployment insurance fell slightly, to 367,000, against 368,000 the previous week.
Also, the U.S. trade deficit widened by 14.1% in March to U.S. $ 51.8 billion.
China's export growth slowed with a sharp blow in April, with growth of 4.9%. Economists expected an export growth of 8.9%.
Bombardier reported a decline in profits and revenues, particularly because a slowdown in deliveries of commercial aircraft. Net income was U.S. $ 190 million, against U.S. $ 220 million a year ago. The action stumbles of 1.65%, to $ 3.63 in Toronto, while the company holds its annual shareholders meeting.
Cascades upslope and returns to the green, with a net profit of $ 6 million in the first quarter. The title adds 3.3%, or 14 cents, to $ 4.37 in Toronto.
Canadian Tire has seen its net profit jump 21% over the first quarter, which moves the action of 6%, or $ 4.03, to $ 71.45. This is the highest since a year for Canadian Tire.
Dollarama his side recorded a historic high at $ 57.34, up 34 cents, or 0.6%.
Here's the current situation in Toronto and New York to 11:40:
- The S & P / TSX gained 69 points, or 0.6%, to 11,744 points;
- The S & P 500 ahead by 6 points, or 0.45%, to 1361 points;
- The Dow Jones is 55 points, or 0.45%, to 12,891 points;
- The Nasdaq added 2 points, or 0.05%, to 2936 points;
- A barrel of oil rises by U.S. $ 0.31, or 0.3%, to $ 97.12 U.S.;
- The ounce of gold rises to $ 0.80, or 0.05%, a $ 595.20 U.S.;
- The Canadian dollar is 0.13 U.S. cents, or 0.15%, to 99.88 cents U.S..
The CAC 40 dipped 1.90% to 3161.97 points after a sharp decline in hiring in the United States that feeds the fears of relapse of the global economy.
Equity markets experienced a sharp decline in new session. The CAC 40 dipped 1.90% at 3161.97 points. And throughout this week shortened, with the May 1, he loses 3.08%.
The other major stock markets follow the same trend, as affected by the Paris monthly figures of employment in the United States. London has dropped 1.93% 1.99% today and Frankfurt.
In New York, the market also accused the coup. Sitting in the Dow dropped 0.90% and the Nasdaq 1.64%. Very expected, the employment figures in the U.S. markets were disappointed. Job creation has slowed for the third consecutive month in April in the United States. For Alexander Baradez, analyst at Saxo Bank, "the balance of hiring down 25% compared to March reflected a sharp deterioration of the situation on the U.S. labor market and fueling doubts about the strength of the recovery in United States. "
At the same time, euro area, spend one to one flashing red. Activity in the private sector shrank more than expected in April, according to a second estimate of the PMI, which makes fear a recession may be more sustainable than expected. "The sudden deterioration of the situation of Spain recalled earlier this week how much eurozone remains fragile and challenges in the eyes of many observers sustainability strategies austerity implementation across Europe" the analyst believes Saxo Bank. Moreover, the European Central Bank (ECB) disappointed markets last night. While expressing confidence about the prospects for the euro area, the president of the institution, Mario Draghi, has ruled out any new exceptional measure in support of the euro area economy.
The cyclic attacked
Technology stocks and industry, particularly sensitive to economic conditions are again the most affected. Renault has plunged by 4.76% yesterday, the fastest low CAC 40, Technip fell 4.58%, 4.32% of Peugeot and STMicroelectronics of 4.46%. Legrand has announced a turnover superior to expectation, however, has advanced 2.54%, while France Telecom (1.17%) who announced the day before a profit deemed of good quality continued its forward march.
The Paris stock exchange was changing down Friday in early trade (-0.40%), the publication of some good results for French companies were not sufficient to offset the caution rule before the U.S. employment figures expected in the the afternoon.
At 9:22 (7:22 GMT), the CAC 40 index lost 12.79 points to 3210.57 points. The day before he had finished almost unchanged (-0.09%).
Placed on the wrong track by the fall of Wall Street yesterday, the Paris market was preparing for one of the most watched indicators each month, namely the unemployment figures and employment in April for the United States whose Publication is expected at 14:30.
"The employment numbers remain the key indicator of the week mixed against statistics in the United States", say the economists Aurel BGC.
"More than ever, the United States need many new jobs to feed the consumption of households and allow a return of confidence", especially after mixed indicators, they said.
Moreover, the markets expect the indicators in the euro zone, with PMI for April in services and retail trade for March, before the Sunday elections in France and Greece.
"The parliamentary elections in Greece is a major challenge for the entire euro area," strategists warn of Credit Mutuel-CIC, warning of danger "if they win and the extreme challenge to the funding program ".
For now, the Paris market was mainly digested a wave of corporate earnings.
BNP Paribas lost 1.12% to 28.77 euros despite a net profit up 9.6% and better than expected.
If Credit Agricole took 0.46% to 3.68 euros, Societe Generale lost 0.38% to 17.20 euros, banking stocks are still vulnerable by the situation in the eurozone.
Other publications were well received, like Lafarge (4.12% to 31.21 euros) which improved operational performance, although this trend is masked by the cost of restructuring companies.
Saint-Gobain gained 1.62% to 32.39 euros, with an increase of its turnover in the first quarter.
Veolia Environnement took 3.93% to 10.84 euros. The group announced a turnover in the first quarter up 4.6% and confirmed the objectives of its strategic plan.
Legrand (2.95% to 26.33 euros) took advantage of sales growth in the first quarter and Alstom (+0.84% at 27.68 euros) was supported by the publication of ambitious goals for the next three years
Air France-KLM lost 0.23% to 3.50 euros after posting a net loss of 368 million euros in the first quarter, stable year on year.
The publication of Steria (3.90% to 15.32 euros) was well received in contrast to that of CAM (-3.48% to 33.19 euros).
Edenred (-2.92% to 23.41 euros) Lowering of suffering from a recommendation to "sell" against "neutral" before by UBS.
Finally, let go EDF 0.31% to 16.26 euros while the group has obtained approval from the Italian stock policeman, Consob, to an improved offer to minority shareholders of Edison.
Conrad Herrmann, senior vice president, managing director of U.S. growth, and co-fund manager Franklin U.S. Opportunities Fund estimates that the U.S. equity market is gradually improving and displays attractive investment opportunities. He said the U.S. economic data continues to improve and more resilient than expected, whether the growth in Gross Domestic Product revised upwards, ISM indices (non-industrial and industrial) showing solid growth , or the fall in unemployment. The rise in consumer confidence and business also explains this situation.
The team of Franklin U.S. Opportunities Fund, based in San Mateo, California, finds investment opportunities in solid companies, generating cash and long-term growth in the technology sector. These securities include not only Apple but also companies that specialize in data storage, network security and cloud computing. The consumer sector also posted strong growth with companies such as Mastercard that has strong growth potential.
According to Conrad Herrmann: "many U.S. companies have emerged from the crisis stronger and better positioned to compete globally. The level of liquidity in the balance sheet is the highest, over 12% of total assets, a level much more than in 2007. In terms of growth, having a strong balance sheet is a big advantage, since it allows easier access to capital markets and make strategic acquisitions. "
From a macroeconomic perspective, the management team believes that the U.S. housing market has bottomed and should begin to improve in the coming years. "The housing market is critical to the overall growth of the economy since the rotation of housing is linked to many parts of the economy, from construction jobs to the sale of durable goods. " Moreover, Conrad Herrmann believes that Americans are starting to spend more, while continuing to improve their financial situation, with higher savings rates and lower debt levels since the crisis.
"The combination of historically low interest rates and improving the employment situation has helped American consumers increase their savings rate. Inflation also remains low. U.S. consumers are in a better financial situation than they were in 2007 and the confidence of business leaders, consumers and investors increases, which will support the market performance of U.S. equities. "
"As volatility continues, the long-term improvements in the economy should enable a sustainable recovery, which will support further growth of the stock market. U.S. Equity valuations are historically low levels and we believe reflect primarily global risk but very little potential for improvement. We will continue to maintain a diversified portfolio by investing in leading companies across all sectors and market capitalization, finding the best opportunities in quality companies and high growth, especially in mid and large caps that are in their early growth phase, while avoiding the "mega caps to lower growth."
The Paris stock market remained misdirected Thursday afternoon, despite good statistics on the forehead of U.S. employment in a market worried about the situation in Spain and who plays the caution on the eve of the long Easter weekend.
At 3:40 p.m. (1:40 p.m. GMT), the CAC 40 lost 0.40% to 3300.28 points.
The new jobless claims in the United States continued to decline, reaching their lowest level in four years, reassuring news on the eve of the publication of the official report on U.S. employment for March.
The labor market overseas has improved significantly since the fall when the unemployment rate fell to 8.3% in February against 9.1% in August. But these good indicators did not allow to overshadow concerns about Spain, which saw its borrowing rates to tighten significantly in the bond market. The yield on the Spanish 10 years and was part of almost 6%.
"It is again in a vicious circle. More interest rate increases to Madrid, unless the refinancing of its debt by Spain appears credible," said Renaud Murail, manager of equities at Barclays Exchange.
"While Germany will refuse that the European Central Bank buys directly from the primary market debt, difficulties remain in some countries," he added.
In the wake of the renewed tensions, bank stocks retreated sharply, while some institutions are very vulnerable to Spanish debt.
And Paris has certainly raised nearly $ 8.5 billion in medium and long term, but borrowing rates slightly less favorable.
The trade volume remained modest at 1.975 billion euros as investors have already completed most of their position on the eve of Easter weekend.
The Paris market, as most European financial centers, will remain closed for Good Friday.
BNP Paribas itself from the bottom of the score (-2.83 to 32.26% in euros), followed closely by Credit Agricole (-2.73% to 4.12 euros) and Societe Generale (-2.09% to 19.93 euros).
EDF lost 2.56% to 16.77 euros as the takeover of Edison by the electrician has suffered another setback. Constable Fellow Italian Consob, rejected the price at which the French wanted to buy out minority shareholders of Italian society.
In contrast to the trend, LVMH progressed significantly from 2.32% to 129.85 euros in after its CEO Bernard Arnault is confident for 2012 after a strong first quarter.
CAC 40 off, Soitec yielded 3.94% to 3.76 euros allocated since the previous day (-6.88%) by the bankruptcy of the German Q-Cells.
U.S. stock markets plunged over 1% as investors worried about employment statistics. In Toronto, the decline is more moderate.
He has created 00 120 jobs in March in the U.S., according to data released Friday. This is the lowest job creation for five months. It is also less than the forecast of 205,000 jobs. U.S. markets were unable to react to the news the same day because of Good Friday holiday.
Upon opening, the U.S. stock exchange news channel CNBC reported that the three major U.S. indices (Dow Jones, S & P 500 and Nasdaq) touch a low of one month.
On Monday, China unveiled a level of inflation above expectations. Inflation rose 3.6% in March, against an expectation of 3.3%. The price appreciation occurs when the economy slows. High inflation could reduce the flexibility of authorities to support growth.
The opening of a negotiation with Iran over its nuclear program has eased concerns about oil supplies. Oil prices slip nearly U.S. $ 2.
Three minutes after the opening, AOL takes 36% to U.S. $ 25.14. The company sells about 800 patents to Microsoft for more than U.S. $ 1 billion.
Around 9:40, here's the current situation in Toronto and New York:
- The S & P / TSX loses 50 points, or 0.41%, to 12,053 points;
- The S & P 500 removes 16 points, or 1.15%, to 1382 points;
- The Dow Jones down 127 points, or 0.97%, to 12,993 points;
- The Nasdaq removes 39 points, or 1.28%, to 3041 points;
- Oil prices depreciating U.S. $ 1.94, or 1.88%, to $ 101.37 U.S.;
- The ounce of gold gained U.S. $ 16.20, or 0.99%, to a $ 646.30 U.S.;
- The Canadian dollar was down 0.62 U.S. cents, or 0.64%, to 100.04 cents U.S..
Wall Street awaits the release of unemployment figures Friday to give a direction depending on the strength of the U.S. economic recovery which they will testify before the start of a new season of quarterly results next week.
Over the last four sessions, the Dow Jones Industrial Average, an index of 30 blue chip stocks on Wall Street, has sold 1.15%, ending Friday at 13,060.14 points.
The Nasdaq, dominated by technology, has meanwhile declined from 0.36% to 3080.50 points. Since the beginning of the year, he recorded an increase of 18.7%.
The broader index Standard & Poor's 500 fell 0.74%, ending at 1,398.08 points.
On the edge of a long Easter weekend, Wall Street was entirely focused on the publication of the monthly report from the U.S. government on employment and unemployment in the United States, "a publication complicated by the fact that stock markets will be closed "because of Friday, noted Chris Low of FTN Financial.
These statistics "will most likely set the tone for the coming days," added Abdullah Karatash, Natixis, "with the start of earnings season" of companies for the first quarter 2012.
This earnings season will be inaugurated on Tuesday by Alcoa, the American aluminum giant, but if important they testify to the strength of economic activity in the U.S., the performance of U.S. companies will not be at the center of attention in the coming days.
"The biggest news for next week is the dissemination of the report Friday," insisted Mr. Low, "because there is a debate within the leadership of the Fed (U.S. central bank) about the job" , he added.
"If the figures are encouraging (...), then this will give more optimistic due to campaigning for the highest interest rate. However, if they disappoint, the market will start to anticipate a new wave of relaxation money ", in order to stimulate recovery, summarized the strategist.
Dissemination of minutes of the last Fed meeting, March 13, Tuesday had precipitated a drop in all markets, shaken by the low support expressed for new stimulus measures, despite the generally optimistic tone of these discussions about the U.S. economy.
The decline that followed, contrasting with the end of a historical first quarter the previous week, during which Wall Street posted its largest gain in 14 years, was seen as a sign of a turnaround .
"We wonder whether the correction that we are witnessing the arrival signals a downtrend in the market bottom," and has questioned Sat Stovall, S & P Capital IQ.
Furthermore, after Greece, a failed bond issue aroused Spanish fears of contagion from the debt crisis in the eurozone, if the system firewall set up by EU leaders was not enough not to save the finances of Madrid.
In this uncertain environment, investors will scrutinize all the more attention the various indicators next week.
In addition to the unemployment figures Friday, and corporate earnings, investors will follow including retail sales figures Tuesday and the presentation of the Fed's Beige Book, report of conditions on the U.S. economy on Wednesday.
Also be on the agenda of new weekly jobless claims and the trade balance of U.S. Thursday.
The stock market rebound based on a general improvement in economic data and a gradual reordering of the global financial system. The CAC 40 index is derived by the rise of Wall Street.
The greatest stock market indices have crossed earlier in the week of important thresholds: 13,000 points for the Dow, 3,000 points on the Nasdaq, the U.S. index of technology stocks, 10,000 points for the Nikkei 225 and 7000 points for the DAX. The CAC 40 is closer to 3600 points. At our level, it is also a great feat.
None of these thresholds correspond to levels of major resistance from the perspective of technical analysis, but they show that investors have found that the current is sufficiently promising to go to conquer new heights.
The market rebound is primarily based on an improvement of the situation in the U.S., which remains with the Wall Street financial market manager in the world. The steady increase in job creation since the fall of 2011, signs of stabilization in the housing market and the recovery in household consumption are encouraging signs about the health of the U.S. economy.
Only the oil price problem
By last weekend, Christine Lagarde, the president of the IMF has also announced that his team planned to revise upward their forecasts for growth this year in the United States beyond the 1.8% growth up now expected. The good health of the U.S. financial system confirmed by the transition successfully from 15 major banks in seventeen of the stress test is also a very good signal.
The declarations of the leaders of the Fed confirming that the central bank of the United States is committed to ensuring to the end of 2014 interest rates low is an essential element of higher prices. This commitment is essential for markets because it synonymous with ample liquidity for at least two years.
Meanwhile in Europe, interest rates of relax since the success of the exchange transaction of Greek securities. The ECB is also committed to provide all the liquidity needed by the European banking system.
Only downside, rising oil prices threaten the global recovery, including the purchasing power of U.S. consumers and the risk of relapse in economic activity in Europe still weighed down by the sovereign debt crisis is far from be resolved.
The feeling of Figaro Experts Exchange: after the recent increases of course, profit taking is expected in the short term, but the dynamic market that is engaged in recent months based on the solid parts and can expect a continuation of higher indices. Bank stocks deserve to find their place within the portfolio.
The rumor was started by the 'Wall Street Journal and has contributed to the rebound from yesterday to the New York Stock Exchange ... The Federal Reserve is prepared to launch a third plan of quantitative easing ("QE3"), but it would explore innovative techniques to inject additional cash without the risk of fueling inflation in the medium term, according to sources familiar with the matter cited by the U.S. financial daily, usually well informed ...
The Fed could print new money to acquire, either government bonds or mortgage-long term, with the main objective to support the U.S. housing market, moribund since the crisis of "subprime" of 2007 -2008. However, this cash would be "sterilized", the institutions concerned are requested to resubmit the form of short-term loans to the Central Bank, in exchange for a low interest rate. In this way, the Fed could continue to operate the printing press, while maintaining control over the liquidity it created. Diabolical?
Markets hope to learn more about the projects of the Federal Reserve on Tuesday, March 13, when the next Fed meeting on interest rates.
Last night, hope to see the Fed once again support the U.S. economy has led to a sharp rise in the banking sector on the stock exchange, with a jump of 4% for Bank of America, 3.2% for Morgan Stanley, Goldman Sachs 2.4% and 1.6% for the action JP Morgan Chase.
The New York Stock Exchange opened slightly lower Friday, the market pausing after rising last days in the absence of indicators and key results.
In early trade, the Dow Jones yielded 0.06% (7.80 points) to 12,972.50 points. The Standard & Poor's, wider, fell by 0.06% (0.83 points) to 1,373.26 points while the Nasdaq composite lost 0.05% (1.50 points) to 2,987.47.
The S & P 500 should still show on its third consecutive week.
Among the values for the power group Sara Lee earns more than 4% after the announcement of the demerger of its activities next coffee and tea, along with a special dividend.