Cac 40: Cautious start to week on Paris Stock Exchange, fears of economy resurfacing

(BFM Bourse) – The Paris Stock Exchange starts this new week with a slight decline, with investors choosing to remain cautious when there’s no reason to celebrate on Monday. The effects of the restrictive measures against Covid-19 on activities in China, the lowered growth forecasts in the euro area and the weak indicators published across the Atlantic in the afternoon revive the possibility of deterioration in the global economic climate.

The Paris Stock Exchange is giving up a bit of ground tonight, the ambient climate in the markets is not festive. After rebounding 2.5% on Friday, the CAC 40 was down 0.23% to 6,347.77 points. Risk aversion is returning, as fears of the global economy deteriorating with the tightening of monetary policy in the US weaken operators’ morale.

The latest economic news from China now defends a cautious bias. The world’s second-largest economy posted its worst economic performance in two years, with retail sales falling 11.1% year-on-year in April. Industrial production fell 2.9% year-on-year last month, while the unemployment rate was 6.1% in April, close to its all-time high in February 2020.

In the eurozone, the conflict in Ukraine undermines growth and inflation forecasts. The European Commission revised its growth forecast for the Eurozone down 1.3 points to 2.7%, and increased its inflation forecast by 3.5 points to 6.1%. This is well above the European Central Bank’s 2% target. To further tarnish this already bleak picture, the eurozone’s trade balance posted a record deficit of 17.6 billion euros in seasonally adjusted terms in March.

In the United States, economic indicators also appear to have worsened. The latest is the New York area manufacturing index, which fell from 24.6 in April to -11.6 in May.

The opening on Wall Street is a bit hot with a Dow Jones scoring 32,110.14 to 0.28%, with the Standard & Poor’s 500 returning 0.80% to 3,991.61 as the Nasdaq Composite lost more than 1% at 11,681.50 points. . The flagship index of tech stocks is still under pressure, with the Fed’s tone hardening penalizing division stocks.

Casino in sight, Valneva is depressed

On the values ​​front, Casino (+4.76% – €18.92) was on the rise with the announcement of the sales process for its solar subsidiary, GreenYellow.

However, it was Vallourec that finished at the top, raising the SBF 120 index with a gain of 4.84% to 12,572 euros. Other stocks linked to raw materials are also sought, such as ArcelorMittal or Eramet, which gained more than 2% at closing.

Renault completes exit from Russia

Renault finished the session near equilibrium at 23.59 euros, with the automaker offering a way out in Russia after the sale of its holdings in the country.

Orpea, which is the author of a close 3% increase on Friday, gave back more than 9% on Monday. The case is starting to fall again after the release of its annual accounts last week, which highlighted an 83m-euro provision to cover the risks associated with administrative investigations into allegations of fraud.

The reward for the drop at the start of the week was attributed to Valneva, who fell 19.09% to 9,648 euros. The European Commission wants to terminate its contract for anti-Kovid vaccine orders from the French-Austrian laboratory.

On the currency side, the euro is still hovering between $1.04 and $1.05 at $1.0414 in its own zone, still weakened by the strength of the dollar, and is at a 20-year high. Up more than 1%, oil is rising at $112.29 on Brent and $111.90 on WTI, with operators betting on a European embargo on Russian oil despite Hungary’s refusal.

sabrina sadgui

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