(CercleFinance.com) – After the turmoil of the past few days, European stock markets are picking up again this morning, with Frankfurt up 1.1% ahead of London (+1%) and Paris (+0.8%), a return to calm favored by the rather thin economic agenda that is looming in this last session of the week.
Nevertheless, faced with the proliferation of monetary tightening measures, which threaten to plunge the planet into recession, investors are struggling to regain a taste for risk.
Market participants are indeed beginning to realize that the acceleration of the monetary tightening cycle could have an impact on growth, first in the United States and then in the rest of the world.
While no asset class has been spared by the recent correction in the financial markets, the main warning signals undeniably come from the bond market.
The significant easing that is taking place this morning on the Treasuries market should, however, offer a semblance of calm to equities, even if concerns are far from being completely allayed.
Yields on US Treasuries are all starting to fall again, with the ten-year returning to around 3.30% after hitting 3.45% yesterday.
The two-year and the five-year are also falling back from their peaks the day before, confirming that it is now time to relax on the bond compartment.
The macroeconomic agenda looks slim today, with the publication of the final inflation figures in the eurozone, then industrial production and leading indicators from the Conference Board in the United States.
Investors were, however, able to take note of inflation in the euro zone, which stood at 8.1% over one year in May, according to figures published Friday by Eurostat, which thus confirms its first estimate made at the end of of last month.
This figure, which marks an acceleration after a 7.4% gain in April, is more than four times higher than the 2% target historically set by the European Central Bank (ECB).
The strongest come from energy (+3.9 percentage points), followed by food, alcohol and tobacco (+1.6 point), services (+1.5 point) and industrial goods (+1.1 points).
In European Stocks news, Sandoz today announced that the European Medicines Agency (EMA) has accepted its application for a 100 mg/mL high-strength formulation (HCF) of its biosimilar (adalimumab) for regulatory review. .
Equinor announces that it has launched a study in the Troll and Oseberg fields, with its partners Petoro, TotalEnergies, Shell and ConocoPhillips, to study the possibility of constructing a floating offshore wind farm approximately 65 kilometers west of Bergen , in Norway.
Finally, Oddo confirms its ‘outperformance’ rating on Ferrari shares, with an unchanged price target of 230 euros, after the prancing horse undertook to increase the return of shareholder value (increase in payout of 30% to 35% and new share buyback program of 2 MdE, >6% of market capitalization and almost double the previous plan), during its CMD (investor day).
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