Cac 40: Amid inflation and growth fears, Paris Stock Exchange falls more than 4% weekly

Cac 40: Amid inflation and growth fears, Paris Stock Exchange falls more than 4% weekly

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(BFM Bourse) – The Paris Stock Exchange closed sharply falling 4.22% on a weekly basis, the strong US employment report did not cause the euphoria that was traditionally visible when we read good statistical invoices. Instead, it awakens operators’ fears about current price power and the impending economic slowdown.

After a difficult weekend on the Paris Stock Exchange, the euphoria of investors after the meeting of the US Federal Reserve fell on deaf ears. The deteriorating health situation in China, inflation and the risks of recession come to mind in the markets. The CAC 40 index concludes this week with a fall of 1.73%, to 6,258.36 points, returning to the two-month low. After falling 0.72% last week, the CAC 40 recorded a new weekly drop of 4.22% this time.

In a calmer context, the strength of employment in the US in April would have been welcomed by the markets. At present, this good news on the financial front is killing the last hopes of a change of opinion of the US Federal Reserve in the next rounds of monetary screws. The Department of Labor has indeed pointed out that the US economy had created more jobs than expected in April, or 428,000 versus the 395,000 expected by consensus. The unemployment rate remained at 3.6%, close to the level of February 2020. Still on the macroeconomic front, industrial production in Germany fell in March, amid disruptions in supply chains by Covid-19 and the war in Ukraine.

The governor of the Banque de France, François Villeroy de Galhau, assessed on Friday “reasonable” that the European institution put an end to the negative interest rates “until the end of this year”, when it is preparing to relax its financial support measures. The aim is to try to control inflation affecting the eurozone, which stabilized at a record 7.5% in April over the course of a year.

On the stock side, corporate publications are following suit. Scor resists and presents gains of 0.73% at 26.26 euros. However, the reinsurer suffered a loss of € 80 million in the first quarter after a profit of € 45 million. The war in Ukraine and the increase in natural disasters in the last quarter have burdened Scor’s accounts.

JCDecaux was burdened by Chinese restrictions

The red light of the SBF 120, JCDecaux unscrews from 10.26% to 17.24 euros, the pilots did not appreciate the cautious prospects announced by the giant of the billboards.

Excluding periodicals, Euroapi, Sanofi’s active ingredient subsidiary, gained more than 12% on its first day of trading.

Ubisoft rose 4.04% to 49.50 euros, continuing to be swept away by speculation about a possible acquisition of the video game group.

Oil shares are benefiting from rising oil prices, such as CGG, which is recovering 9%, Vallourec (+ 2.53%) or TotalEnergies, which is gaining 2.19% at 50.60 euros.

Stellantis gains 3.36%, taking advantage of the strong first quarter. On Thursday, the auto industry reported a 12% increase in net sales in the first quarter of this year, supported by a strong mix of prices and vehicles and favorable exchange rate effects.

In the foreign exchange market, the euro regained some color against the dollar at 1.0582 after falling briefly below $ 1.05, while the dollar took advantage of the latest developments in the Fed in its monetary policy. Bond yields are up 3.09% in the 10-year US. Over 2%, oil remains well-oriented and trades at one-month highs at $ 113.17 for the Brent North Sea and $ 110.08 for the WTI. The European Commission has proposed a gradual embargo on Russian oil imports. The decision is part of the sixth round of sanctions against Russia over its offensive in Ukraine.

Sabrina Sadgui

© 2022 BFM Bourse

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