(BFM Bourse) – After dropping 4.6% last week, the CAC 40 plunged 4.9% weekly. Friday’s initial rebound was in tatters as several poor indicators released on Friday confirmed the slowdown in the US economy. A prospect that also plunges oil, by more than 5%.
The Paris Stock Exchange finally fails to rebound on Friday, the latest statistics from the United States fuel fears of recession in the world’s largest economy. The CAC 40 ended the week down 0.06% at 5,882.65 points, and down 4.92% weekly. The Parisian place posted its worst week since the week following the launch of the Russian offensive in Ukraine. Above all, the CAC 40 has officially entered the “Bear Market”, ie it has fallen by more than 20% since its peak on January 5th.
It’s hard to be proactive on equities when the Conference Board’s leading indicators contracted in May, driving the nail on the head of a scenario of a slowdown in the American economy. Especially since the central bankers, except that of Japan, are in tune to put out the fire of soaring prices. Investors fear that the Fed’s deployment of major measures against inflation will discourage demand and push the world’s largest economy into recession.
Oil prices plunge 5%
Oil prices recorded their first weekly decline in a month, with Brent and WTI losing more than 5%, weighed down by concerns about a growth slump in the United States. Few fundamental news came as a diversion, the news showing anemic a few weeks before the next publication season.
The announcement by Orpea that the board of directors had decided to deprive the former CEO Yves Le Mascne of severance pay follows a rise of nearly 6% in the stock.
BNP Paribas gleaned 0.5% while the French bank would have approached the Dutch government with a view to a possible takeover of ABN Amro boosted the course of the credit institution, according to Bloomberg.
On the other hand, Lagardère lost 6.5%, TotalEnergies plunged 5%, penalized by the decline in oil prices.
Grain producer Agrogeneration, mainly based in Ukraine, said it could only carry out agricultural work as planned on about 53% of the land it manages. About 40% of all its machinery, equipment, buildings and other infrastructure are in the Russian occupation zone or are destroyed/heavily damaged. In addition, Russian troops stole equipment which was moved to Russia. To date, approximately 8,100 tonnes of raw materials from the 2021 harvest have been destroyed, stolen or considered lost…
On the foreign exchange market, the euro accelerated downward (0.74%) to 1.0469 dollar after three sessions of increase including nearly 1% rebound on Thursday.
Sabrina Sadgui – ©2022 BFM Bourse