The Paris Stock Exchange falls in the first stock exchanges. Wednesday night’s euphoria gave way to a sell-off in the United States and Asia, with central banks’ inflation-driven strategy at the center of their concerns. The US Employment Report for April could provide some answer to the health of the US economy.
Just before 9:45 in the morning, the Bedroom 40 lost 1.53% to 6,270.78 points in a business volume of almost 500 million euros.
With the exception of Tokyo, which reopened after three official holidays, Asian markets fell again this morning, China’s CSI 300 fell 2.5% and Hong Kong’s Hang Seng fell 3.8%. Reaffirmation of Beijing’s commitment to maintain a “zero Covid” policy fuels aversion to risky assets.
On Wall Street, the S&P 500 fell 3.6% on Thursday and the Nasdaq Composite nearly 5%, its biggest drop since June 2020 to end at its lowest level since November 2020. The previous day, the index of large tech stocks had risen more than 3%.
Controlling inflation can be ‘painful’
The return of the risk aversion follows a relief rally following the Federal Reserve’s decision to raise interest rates “only” by 50 basis points, while ruling out the prospect of 75 basis points before September.
Investors fear that central banks will not act fast enough to try to stem the rise in prices, while they fear that a very sharp tightening will lead to ambitious growth. Jerome Powell acknowledged Wednesday afternoon that controlling inflation risks ” wound In the bond market, the yield on the 10-year US bond marked the first close of more than 3% since 2018 last night, reflecting fears of rapid monetary tightening and remained around 3.06% this morning.
The US Department of Labor will unveil its employment report for last month at 2:30 p.m. The Bloomberg Consensus expects 380,000 job creation after 431,000 in March and a 0.1 point drop to 3.5% of the unemployment rate. The average hourly wage is expected to increase by 0.4% in one month and 5.5% in one year. In this case, ” the good news is bad news for stock markets, to the extent that good data would console the Fed in accelerating the normalization of its monetary policy.
JCDecaux and Euroapi do the splits
The biggest drop in the SRD, JCDecaux fall 7.3%. Turnover growth of 50.3% in the first quarter offset by a 15% forecast for organic growth in sales in the second quarter, lower than analysts’ expectations due to the effects of health restrictions in China. For Berenberg, the outdoor communication team certainly had a good start to the year, but the prospects are slim. Societe Generale reduced the target price for the title from 17.60 to 16.90 euros, while maintaining its view of “selling”.
Worth loses 1.77% The insurance company confirmed its targets after recording a 1% increase to 31.3 billion euros in its turnover in the first quarter, in an uncertain geopolitical context associated with the conflict in Ukraine.
Score gains 1.3%. The reinsurer suffered a net loss of 80 million euros in the first quarter, penalized by a provision related to the conflict in Ukraine and a series of natural disasters, but the volume of gross written premiums increased by almost 10% to 4.7 billion euros.
The subsidiary Sanofi specializing in active pharmaceutical ingredients Europe increased by 5% at its first meeting.