The Euro-Stoxx50 fell -3.3% towards 3,600 (-4.8% weekly) while the DAX40 dropped -2.9% (below 13,800).
On Wall Street, after a -2% plunge in 90 minutes on Thursday evening, the US indices opened on a downward ‘gap’ and amplified their fall: the Dow Jones dropped -2.2%, the S&P500 -2.5% , the Nasdaq which plunges -3% sinks 11,500Pts (watch out for the break tonight 10 p.m.)
The day had started badly in Europe (‘gap’ the fall of the CAC, DAX, E-Stoxx50…) the day after a day marked by the sharp decline in the New York indices (-2.4% on the S&P500 , -1.9% on the Dow Jones, -2.7% on the Nasdaq) which had lost its footing Thursday evening from 8:20 p.m. for reasons that are difficult to identify.
Conversely, the widening of losses since 2:30 p.m. seems obvious since the publication at 2:30 p.m. of the American ‘CPI’ which soared by +1% (nearly an increase of 0.3% in April).
The rise in consumer prices in the United States turned out to be much stronger than expected (+0.7%) and came out at +8.6% on an annual basis (a high since December 1981, in the wake of rents, plane tickets, fuel, etc.).
The Department of Labor, which compiles the ‘CPI’, specifies that in ‘core’ (excluding energy and food products, two traditionally volatile categories), US inflation stood at +0.6% last month (i.e. +6 % on an annual basis), an increase here again slightly above the market consensus.
To make matters worse, the confidence of American households (U-Mich survey) fell from -8.2 Pts to 50.2.
The bond markets deteriorated sharply again (Treasury bonds had fallen sharply the day before): our OATs lined up for a 10th consecutive session of decline – it’s an exceptionally long ‘tunnel’ – which propelled the yield above del of 2.077% (+9pts).
The Bunds climbed by +4.5Pts 1.48% (+15Pts weekly) while the Italian ‘BTP’ added +12Pts 3.832%: the ‘spread’ with the Bund reached +235Pts base, unheard of since 2013.
The trend deteriorated on Thursday following the ECB Governing Council which very clearly mentioned the possibility of a rate hike of 50 basis points from September.
T-Bonds deteriorate by +9Pts to 3.013% (and the ‘2 years’ takes 15Pts to 2.967%, the ‘5 years’ +13Pts to 3.195%) while the ‘CPI’ reinforces the prospect of a rise of 50 points of institution’s rate base at its meeting scheduled for next week (the 15th).
The rise in the dollar accelerated (+0.85% to 1.0530) after a rise of +0.8% the day before: traders had reacted yesterday to comments from relatives of Janet Yellen and the White House, who believe that the inflation figures will remain bad for a long time, while the average price of fuel has crossed the threshold of five dollars per gallon (seven dollars in California) and could rise by 20% this summer.
In the news of French companies, banking stocks are suffering with almost -6% on Crédit Agricole, -4.7% on St Gnrale.
Atos (-5%) is having a nightmarish week (-12%) as the disagreements at the head of the group sow doubt among shareholders.
Faurecia (-6%) finds itself at the bottom of the SBF120 and continues to chain spectacular spreads (from 6 to 7% in all directions) after the announcement of its AK to finance the takeover of Hella.
Saint-Gobain announces an investment of approximately 90 million Canadian dollars in its plasterboard plant located near Montreal in Canada.
Orpea (-7% to 22.05E) hit a new low: the group said on Friday that it had taken note of the questions and proposals raised by a group of investors, its management pleading for the establishment of a ‘constructive’ dialogue with all stakeholders.
2CRSi gains almost 5% after the announcement of a new contract awarded to 2CRSi Middle East by a new partner in Ethiopia, specialized in IT deployment, having chosen its products and solutions to deploy its peripheral data center project.
Finally, EDF indicates that 93.3% of the rights were exercised in favor of payment in new shares of the balance of the dividend for 2021, at the end of the option period which was open from May 20 to June 7. included.
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