(BFM Bourse) – The rebound initiated at the end of the week will have come to an end. The Paris Stock Exchange, which had been able to recover last week thanks to an increase of 2.5% on Friday, is returning to its downward trend. Indicators released earlier in the day in China revive fears about the world’s second largest economy.
With a hearty rebound of 2.5% on Friday, the Paris market had managed to end a streak of three consecutive weeks in the red, at the end of 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% last month year on year while the unemployment rate is close to its all-time high in February 2020, at 6.1% in April.
The CAC 40 index lost 0.34% to 6,6341 points around 12:30 p.m., bringing the decline in the Paris star index to 11.46% since January 1. The Paris Stock Exchange had however attempted a stealthy foray into positive territory at the end of the morning before changing its mind, fears about the economic health of the euro zone were too heavy to bear.
The conflict in Ukraine is undermining forecasts for growth and inflation in the euro zone. The European Commission has just revised down its growth forecast for the euro zone by 1.3 points to 2.7%, and raised its inflation forecast by 3.5 points to 6.1% for the year. In progress. This is well above the European Central Bank’s 2% target. To further tarnish this already gloomy picture, the euro zone’s trade balance recorded a record deficit in March at 17.6 billion euros, seasonally adjusted.
Casino in sight, Valneva depressed
On the values front, the star of the day is Casino (+5.98% around 12:25 p.m.) which takes the lead in the SRD. The action of the Saint-Etienne distributor is driven by the announcement of its sale process for GreenYellow, its subsidiary dedicated to the production of solar energy
Casino shares are followed by Elior (+4.66%) and Beneteau (+3.26%). The nautical manufacturer is trying to recover on the stock market after its heavy fall at the end of the week following a disappointing publication.
Values linked to raw materials are also sought after, such as ArcelorMittal, Vallourec or Eramet, which gain 3%.
Renault finalizes its exit from Russia
Renault is almost stable at midday, while the automaker offers a way out in Russia after the sale of its assets in the country.
Author of an increase close to 3% on Friday, Orpea gave back nearly 6% on Monday. The file starts to fall again after the publication last week of its annual accounts highlighting a provision of 83 million euros to cover the risks linked to administrative investigations into accusations of abuse.
The prize for the decline at the start of the session is attributed to Valneva, which fell by 20%. The European Commission wishes to terminate its contract relating to orders for the anti-Covid vaccine from the Franco-Austrian laboratory.
On the foreign exchange side, the euro is still sailing in its zone between 1.04 and 1.05 dollars at 1.0424 dollars, still weakened by the strength of the greenback. Oil retreated slightly at midday with Brent at $110.69 and WTI at $109.90 as an agreement on a Russian oil embargo is not guaranteed on Monday, according to the latest statements from the head of European diplomacy, Josep Borrell.
Sabrina Sadgui
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