(BFM Bourse) – The Paris Stock Exchange ended sharply down 4.22% on a weekly basis, the robust US employment report did not cause the euphoria traditionally visible when reading good statistics invoice. Rather, it awakens operators’ fears about the current strength of prices and the economic slowdown in sight.
After a difficult weekend on the Paris Stock Exchange, the euphoria of investors post-meeting of the American Federal Reserve fell like a breath. The deterioration of the health situation in China, inflation and the risks of recession come to mind in the markets. The CAC 40 index ends this week on a decline of 1.73%, to 6,258.36 points, back on two-month lows. After declining by 0.72% last week, the CAC 40 recorded a new weekly decline of 4.22% this time.
In a calmer context, the robustness of US employment in April would have been applauded by the markets. Currently, this good news on the economic front kills the last hopes of a change of mind of the American Federal Reserve on its next rounds of monetary screws. The Labor Department has indeed indicated that the US economy had created more jobs than expected in April, or 428,000 against 395,000 expected by the consensus. The unemployment rate remained at 3.6%, close to its February 2020 level. Still on the macroeconomic front, industrial production in Germany fell in March, amid supply chains disrupted by Covid-19 and the war in Ukraine.
The Governor of the Banque de France François Villeroy de Galhau estimated Friday “reasonable” that European institution put an end to negative rates “by the end of this year”, when it prepares to ease off on its economic support measures. The aim is to try to control the inflation which is hitting the euro zone and which settled in April at a record level of 7.5% over one year.
On the stock side, corporate publications are following their course. Scor resists and shows a gain of 0.73% to 26.26 euros. However, the reinsurer suffered a loss of 80 million euros in the 1st quarter after a profit of 45 million euros. The war in Ukraine and the increase in natural disasters over the past quarter weighed on Scor’s accounts.
JCDecaux weighed down by Chinese confinements
Red lantern of the SBF 120, JCDecaux unscrews from 10.26% to 17.24 euros, the operators did not appreciate the cautious prospects announced by the urban billboard giant.
Excluding periodical publications, Euroapi, the Sanofi subsidiary specializing in active ingredients, gained more than 12% for its first day of trading.
Ubisoft gained 4.04% to 49.50 euros, still carried by a wind of speculation on a possible takeover of the video game group.
Oil stocks benefit from the rise in oil prices, like CGG which rebounds by 9%, Vallourec (+ 2.53%) or TotalEnergies which wins 2.19% to 50.60 euros.
Stellantis gains 3.36% taking advantage of its strong first quarter. On Thursday, the automaker reported a 12% rise in net sales in the first quarter of this year, supported by strong pricing and vehicle mix, and favorable currency effects.
On the foreign exchange market, the euro regained some color against the dollar at 1.0582 after briefly falling below 1.05 dollar, the greenback having benefited from the latest developments of the Fed on its monetary policy. Bond yields are tending to 3.09% on the US 10-year. Up more than 2%, oil remains well oriented and is trading at 1-month highs at 113.17 dollars for Brent North Sea and at 110.08 dollars for WTI. The European Commission has proposed a gradual embargo on imports of Russian oil. This decision is part of a sixth round of sanctions against Russia due to the offensive launched in Ukraine.
Sabrina Sadgui
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