Cac 40: Economy still slows in China and Europe, CAC declines

(BFM Bourse) – The recovery that started at the weekend will be over. Paris Stock Exchange, which recovered with a 2.5% increase on Friday last week, is returning to its downward trend. Indicators released earlier in the day in China are raising fears over the world’s second-largest economy.

With a satisfying 2.5% recovery on Friday, the Paris market had managed to break a three-week red line in a row, after a particularly volatile week. But the latest economic news from China now calls for caution. 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.

The CAC 40 index slid 0.34% to 6.6341 around 12:30 p.m., bringing the Paris star index down from 1 January to 11.46%. But as the Paris Stock Exchange tried to sneak into positive territory before changing its mind late in the morning, fears over the eurozone’s economic health were too heavy to bear.

The conflict in Ukraine undermines forecasts for growth and inflation in the euro area. 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.

Casino in sight, Valneva is depressed

On the values ​​front, the star of the day is Casino (+5.98 at around 12:25), taking the lead in SRD. The action of the Saint-Etienne distributor is shaped by the announcement of the sales process for its subsidiary GreenYellow, dedicated to solar power generation.

Casino shares are followed by Elior (+4.66%) and Beneteau (+3.26%). The shipping maker is struggling to recover in the stock market after a heavy fall over the weekend following a disappointing release.

Values ​​related to raw materials with a 3% gain, such as ArcelorMittal, Vallourec or Eramet, are also in demand.

Renault completes exit from Russia

Renault is almost stable at midday, with the automaker offering a way out in Russia after the sale of its assets in the country.

Orpea, which was the author of a close 3 percent increase on Friday, gave back close to 6 percent on Monday. The file is starting to fall again after its annual accounts were released last week, highlighting an 83m-euro provision to cover risks associated with administrative investigations into allegations of misconduct.

The reward for the fall at the start of the session was attributed to Valneva, who fell by 20%. 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 in its own region at $1.0424, still weakening on the strength of the dollar. Oil fell slightly at midday at Brent $110.69 and WTI $109.90 as a Russian oil embargo deal was not guaranteed on Monday, according to the latest statements by Josep Borrell, head of European diplomacy.

sabrina sadgui

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