(CercleFinance.com) – The heaviness is increasing on European markets as Wall Street extends the ‘sell off’ of the previous day, starting the session in a bearish ‘gap’ (the Nasdaq drops -1.7% around 12.100, the S&P500 loses -1.1%).
Hopes of a last-minute lifesaving boost with the publication of the American ‘NFP’ are fading… and the losses are growing.
The Paris Stock Exchange lost -2%, around 6,240 points, the Euro-Stoxx50 fell -2.3% to 3,610, the day after a day marked by the plunge in the American indices by -4% on average.
On the bond markets, the situation is the same with unchanged T-Bonds which tend by +5Pts towards 3.115%. Our OATs – far from serving as refuges against the fall of the CAC40 – saw their yield soar by +10Pts to 1.664%, a new 2022 record, the Bunds posted the same difference at 1.104% (another record).
The ’10-year’ US rose rapidly yesterday and camped this Friday above the psychological cap of 3% while the barrel of oil climbed 1.3% to $112.4 in London.
In addition to the decisions of the Fed – which affirmed that it would not go beyond rate hikes of half a point, whatever the inflationary context – the Bank of England for its part formalized yesterday a raising of its main key rate, from 0.75% to 1%, aimed at coping with galloping inflation in the country.
The evolution of inflation and the magnitude of rate hikes should therefore continue to be the main point of attention for investors in the coming weeks.
“These two variables remain key in determining monetary policy and will continue to dictate the trend for equity markets,” warns Gilles Guibout, head of European equities at AXA IM.
The monthly employment figures in the United States are broadly in line with expectations with +428,000 job creations while economists were expecting 400,000 job creations in April.
The US Department of Labor is revising March numbers down -3,000 and February numbers down -36,000 to 714,000.
The unemployment rate has stopped falling, stabilizing at 3.6% but the labor force rate is falling from 62.4 to 62.3%.
The hourly wage increased by +0.3% (to $31.85) while the number of hours worked remained stable at 34.6/week.
With the US economy now close to full employment, wage pressures remain strong and could even intensify if vacancies are not filled.
The Dollar lost some ground, it fell -0.3% against the Euro, towards 1.0580.
In the news of French companies, Scor posted a net loss of 80 million euros for the first quarter of 2022, compared to a net result of 45 million a year earlier, for gross written premiums of 4.71 billion, up 14.3% (+9.7% at constant exchange rates).
For its part, the TF1 group has announced the renewal of its partnership with the French football team until the 2022 World Cup in Qatar, as well as the acquisition of the most beautiful unencrypted posters of UEFA Euro 2024. , of which TF1 will be the official free-to-air broadcaster.
Stellantis gained almost 3.5% after the announcement of its figures for the 1st quarter of 2022 which prompted several positive recommendations.
UBS estimates that turnover is higher than forecast thanks to the price-mix and confirms its advice to buy on the stock and its target price of 25 E.
Stifel reiterates its ‘buy’ recommendation on Stellantis with a price target reduced from 29.5 to 28 euros, after a ‘robust revenue performance in the first quarter (+12%), testimony to the ongoing price-mix discipline’ .
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