The burst of relief fueled yesterday by the Bank of England’s emergency intervention to stabilize the debt market gave way today to fears linked to the sharp acceleration of inflation in Germany. Consumer prices rose 10.9% year on year in September in harmonized EU data, according to the first estimate from the Federal Bureau of Statistics, their first double-digit rise since the creation of the euro, it more than 20 years ago, and beyond the anticipation of 10.2%. It is partly due to the cessation, this month, of subsidies paid to households for public transport and fuel, but above all to the soaring prices of energy and food products. On the bond market, the yield on the German 10-year bond tightened by 11 basis points, to 2.23%.
Another economic stat released by the European Commission shows that economic sentiment in the Eurozone has fallen to its lowest level in 2 years. “The outlook continues to deteriorate in Europe, which forces the ECB to continue on the path of monetary tightening, while growth forecasts decline as the energy crisis worsens”underlines EstyDwek, head of investments at Flowbank.
Big drops on the SRD
In this context, the Cac 40 lost 1.53% on Thursday to 5,676.87 points. Elsewhere in Europe, Britain’s Footsie and Germany’s Dax fell nearly 2%. Note, however, the good resistance of Porsche for its first day of trading. The action ends up symbolically. This, however, did not prevent the European Stoxx automobile index from posting the largest sectoral decline. Equipment manufacturers, which are very cyclical and particularly sensitive to the onset of recession, fell sharply. In Paris, Faureciain debt since the takeover of the German Hella, plunged by almost 15%, a little more than Plastic Omnium (-13%).
The other dives of the day, on the SRD, are to be found on the side ofOrpea (-21%), after the publication by the operator of Ehpad of its half-yearly accounts, and Solutions 30 (-18%). The digital assistance service provider posted a net loss of 11.3 million euros in the first half, during which its gross operating surplus (Ebitda) fell by 40.2%, to 29.6 million euros. The search for a reference shareholder is put on hold.
On the other side of the Atlantic, on Wall Street, the major American indices are currently losing between 2% and 3%. Apple loose more than 4% as BofA Research downgraded the stock from “buy” to “neutral” and lowered its price target from $185 to $160, citing fears of slowing demand.
In contrast, Atos jumped more than 10% at the very end of the session. The digital transformation group said it had refused an offer for its Evidian branch, which combines its digital, big data and security activities, on the basis of an enterprise value of 4.2 billion euros.