(BFM Bourse) – After three weekly declines in a row, the CAC 40 was able to recover this week thanks to a new rebound of 2.5% on Friday, a surprisingly positive epilogue to a sequence that is still very volatile.
The Paris market managed to end a streak of three consecutive weeks in the red by offering a substantial rebound on Friday. However, volatility remained present throughout the week, starting with a fall of 2.75%, the sharpest decline in a session since March 10. The CAC 40, on the other hand, experienced two strong rebound sessions on Wednesday (biggest rise since March 29) then again +2.52% on Friday, raising the cursor to 6,362.68 points, equivalent to a lead of 1, 67% over the whole week.
The main US indices also rebounded in mid-session in New York, in particular technology stocks (+3.5% for the Nasdaq Composite, while the latter have so far been the most heavily sanctioned).
High inflation and slow growth
“The investment climate seems to be getting darker and darker. Global economic growth is slowing, inflation is rising, no resolution to Russia’s invasion of Ukraine is in sight and new Covid-related lockdowns are hitting China as a whole, which is holding back growth. Faced with these obstacles, investors who adopt a defensive position could be forgiven,” summarizes Pictet AM’s investment strategy adviser Frédéric Rollin. However, the strategist maintains a neutral stance on equities (rather than underweight) mainly in view of the fact that investor pessimism already seems to be exacerbated, suggesting the existence of a certain bearish excess. In addition, valuations generally look more attractive to him, with the 12-month price-earnings ratio of the MSCI All Country World Index having fallen to 15.5 times, more or less in line with its average for the past 20 years.
For the third session in a row, STMicroelectronics action was among the winning stocks in Paris on Friday, jumping 6% in the wake of the presentation on Thursday of its ambition to reach 20 billion dollars in turnover. business within five years at the latest.
Strongly sanctioned at the start of the day, Orpea finally climbed 3% despite the announcement of the waiver of the dividend for this year, the firm devoting itself to putting its finances in order.
The Savoyard group Somfy (+13.75%) was also sought after, although the stock will be included in the (admittedly very large) sample of the MSCI ACWI Small Cap Index. Antin Infrastructure Partners (+12%) or Waga Energy (+1%) are also part of the promotion.
Thanks to growth that is still higher than the objectives that have been raised several times in 2021-2022, SII has won 6%.
At the end of the session, the rise in oil prices increased further with a barrel of Brent back to 111 dollars (+3.35%), a highest in the space of a week, and 110 dollars (+3 .7%) with regard to WTI, especially after the last interruption of negotiations on the Iranian nuclear.
Falling below $1.04 on Thursday for the first time in five years, the euro fell to nearly 1.035, finally rising somewhat to $1.0411 (+0.28%) at the end of the day.
Guillaume Bayre – ©2022 BFM Bourse