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Financial news and stock markets.

Started by scarface, February 26, 2015, 08:28 PM

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scarface

Note that the cac40 is up 3.4%. In the current context, I sold some Societe Generale stocks. The Wall Street futures are flat, but I expect one more "coup de tabac".
Note that Airbus is up 8.5%. EDF is still down 3% at 6.6â,¬, losing 50% over one month.

scarface

The European markets are now down (once again)...The cac 40 lost all its gains. For those who don't have stocks, it might be a good time to invest for the middle term. I suggest buying bank stocks and companies in the pharmaceutical sector.
Despite the big fall of the air plane companies, I advise you to avoid them.

scarface

I'm going to talk about the US markets. In the current context, what stocks should you buy?
Well, I think you shoud still avoid Tesla. At the current level, Tesla is worth twice the market cap of BMW. Even if the stock can rebound on the short term, it's still expensive (despite a 60% fall from its top...).
In the Dow Jones, I think Intel, Mcdonald's and Pfizer could be interesting. They are defensive stocks with an interesting dividend. Exxon and Boeing have better yields, but dividends could be cut for oil and airplane stocks given the context.

scarface

#293
Note that the cac 40 is now up 1,9%. Tesla (+13%) and Mcdonald's (+8%) are soaring. However if you have some Tesla stocks, I recommend selling it.
I still suggest buying bank stocks. Socgen confrmed a dividend of 2.2â,¬ today, it's a yield of 13%.
Note that Natixis is up 10% today, I was recommending it a few days ago. The price target is at 3â,¬.

scarface

#294
Yesterday, I was speaking of a target for the cac at 4100 points. Its done, sooner than forecasted, the cac 40 is up 5.85% and the dax 30 is up 6%. I sold some positions on Societe Generale bought yesterday. Ill come back if the markets is going down, since this rebound is a bit artificial. Im not sure this rebound will hold at the end of the day.
The problem is, I still find the US markets slightly expensive, despite the recent correction. The Dow Jones is set to open at 20700 points for the moment.

Natixis is up 10%, the next target is at 2.50e. For Societe Generale, with an EPS 2019 of 3e, I have a long term target at 30e.

Note that I cant write normally since some keys of my keyboard are not responding anymore, like the arrow keys and the numeric keys... Fortunately, they are not the most useful keys. Since the fnac is not selling msi computers anymore, Ill wait. This lenovo is excellent but a bit expensive. The processor seems very good though. I have the impression that the i7 9750f is better than the i7 9750h: https://www.fnac.com/PC-Portable-Lenovo-Legion-Y540-17IRH-17-3-Intel-Core-i7-16-Go-RAM-256-Go-SSD-1-To-SATA-Noir/a14086723/w-4

scarface

Note that I advise you to sell this rebound. Macron announced that its probably the beginning of the coronavirus outbreak and further measures of confinement. Another coup de tabac is probable on the markets.

scarface

#296
Well, despite the fact that Wall Street is correcting right now (The DJ is currently down 1.1% at 19870 points), the European markets were not sold. The cac 40 finished at +5.01% and the Dax at +3.69%. The bank Natixis was up 31%! - I sold 3000 stocks.
In Europe only the Swiss index and the Stockholm OMX 30 were down (both down 1.8%).

scarface

Well, it's another huge slap for the American markets with the Dow Jones losing 4.61%. Coca cola, Disney and 3M lost 10% (I was speaking of another "coup de tabac" - which means bad weather - to come, here it is).


scarface

Note that the Wall Street futures are pointing to another coup de tabac for Monday. The opening of the cac 40 and the dax 30 will be certainly in negative territory.


scarface

Today, I am going to talk about the situation in India.



A near empty Citiwalk Mall in New Delhi, India, on March 19


India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.