The Paris Stock Exchange regains a little height at the end of a week weighed down by the resurgence of fears of recession in the face of the almost general tightening of the monetary policy of the major central banks. A change in tone that caused most European stock market indices to bear market (bear market), one week after the S&P 500. For the time being, the Cac 40 is back just above this zone, which corresponds to a fall of 20% compared to its peak of January 5, but a return to on the 5.907 would bring it back there.
From FOMO to EBA
Mid-session, the Bedroom 40 resumed 1.19% to 5,956.24 points in a business volume of 2 billion euros, inflated by the expiry of options and futures on shares and indices. The contracts future on US indices gain between 0.7% and 1.1%. Wall Street had accused the day before its biggest drop since the end of 2020.
After FOMO (fear of missing outor fear of missing the rise) that prevailed at the start of the year, investors switched to the ABE (anything but equity, everything except stocks), an attitude that is the exact opposite of the famous TINA (there is no alternative to stocks). The hope of a recovery of the world economy in the post-Covid 19 period has been showered by the turn hawkish taken by the Fed before Russia’s invasion of Ukraine drove the point home with soaring agricultural and energy commodity prices.
The SNB no longer wants a weak franc
In addition to the Fed and the Bank of England, whose rate hikes were expected, even if the Federal Reserve had not had such a heavy hand since 1994, the Swiss National Bank (SNB) created a surprise by carrying out a surprise increase of 50 basis points in its main key rate, the first since 2007. Like its British counterpart, it has also indicated that it could toughen its tone if necessary.
” The SNB sent an important message to the marketinsists Ipek Ozkardeskaya, analyst at Swissquote, adding that the central bank now focuses on fighting inflation and partially abandons efforts to depress the franc “. A choice intended to strengthen the franc in order to reduce inflationary tensions.
For its part, the ECB is preparing to toughen its tone in July while the inflation rate was confirmed at the record level of 8.1% over one year in May in the euro zone and at 3.8% excluding food. and energy, which also marked a high.
EssilorLuxottica share buyback
The latest indicators in the United States for housing, jobless claims and manufacturing activity in the Philadelphia area, which contracted for the first time since the spring of 2020, have reinforced the feeling that the American economy could technically be approaching a recession after a contraction in GDP in the first quarter. To follow, this afternoon, the figures for industrial production in May and the index of leading indicators for the same month.
EssilorLuxottica earns 4.5%. The eyewear manufacturer has announced a buyback program for a maximum of 2.5 million shares which will run from June 17 to August 1.
Air France-KLM takes 1.8%. Oddo BHF raised its recommendation on the airline’s stock from “underperforming” to “neutral”.
Among other analyst ratings, Societe Generale downgraded Eurofins Scientific from “buy” to “keep”. The title bends by 2%.
Michelin increased by 1.9%. The action benefits from the Finnish Nokian Renkaat’s increase in its turnover forecast for 2022. In Helsinki, Nokian jumped by nearly 11%.