CAC40: fall towards 6200 Pts, general decline in Europe


The Paris Stock Exchange confirms its decline: after having sold 1.2% the day before, the Parisian index yielded 2% this afternoon, around 6,230 points.

Investors are still looking to find the right positioning in the face of a Federal Reserve which is raising its rates and global growth struggling due to the recent Chinese lockdowns.

This renewed volatility in the markets took many investors by surprise, forced to admit that the low volatility regime that reigned supreme in recent years is now over.

The rise in the VIX, known as the ‘fear index’, is a good illustration of the prevailing nervousness: the index jumped by more than 18% yesterday to go back above the 30-point threshold. As a reminder, the market is said to be calm below 20 and nervous above 30.

This return to volatility is pushing market participants to review their asset allocation strategies, without them really knowing where to go at the moment.

“Is high inflation, or central bank efforts to contain it, about to cause a recession?” asks Joseph V. Amato, director of equity investments at Neuberger Berman.

‘Can governors ensure a soft landing?’ continues the grant. ‘And have equity markets fully priced in these risks?’ he asks.

On the bond market, the yield on 10-year Treasuries is also very unstable and has fallen back to around 2.88%, after several days of about-turns and the peaks reached last week.

At Aurel, it is estimated that the less aggressive speeches of the Fed, less ‘hawkish’ was simply not listened to by investors. Furthermore, ‘The ECB is concerned about the impact of the deterioration of the European economy and the volatility of the markets on the balance sheets of European commercial banks’, the investment firm believes.

Now deprived, or almost, of results, investors will have to use the compass of indicators to find their bearings on markets in search of direction.

This Thursday, the spotlight will be on the publication of several American activity indicators, including the Conference Board’s leading indicator.

Investors took notice of manufacturing activity in the Philadelphia area which continues to rise overall this month, but at a much less vigorous pace, according to the local Fed index which fell 15 points to settle at 2.6 in May, its lowest level in two years.

On the agenda of indicators also appear, still in the United States, registrations for unemployment benefits. The number of weekly claims for unemployment benefits increased the week of May 9 in the United States, standing at 218,000, against 197,000 (revised figure) a week earlier.

In the news of French companies, EDF announces that it is adjusting its nuclear production estimate for 2022 to 280-300 TWh against 295-315 TWh previously, while several reactors are closed following a stress corrosion phenomenon affecting portions of piping nuclear reactors.

Socit Generale announces the finalization of the sale of Rosbank and its insurance subsidiaries in Russia Interros Capital, a transaction announced on April 11 which will result in the recording of a net loss in the income statement of approximately 3.2 billion euros. euros.

Eurazeo publishes a 41.5% increase in its assets under management over 12 months, to 32.2 billion euros, while quarterly revenue increased by 31% (ptcc) compared to the same twelve-month period more tt.

The British competition authority announced Thursday that it was concerned about the economic consequences of the merger between Veolia and Suez. The Competition and Markets Authority (CMA) indicates that its in-depth investigation has shown that the merger between the two French groups could lead to a weakening of competition in the waste and wastewater treatment market in the United Kingdom.

Vallourec announced a turnover of 916 ME for the 1st quarter, up 30.5% compared to the same period a year earlier, the activity having been driven by a 10.3% increase in the production shipped, 395 thousand tons.

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