Paris Stock Exchange: Paris lackluster after disappointing global economic indicators


Paris (awp / afp) – The Paris Stock Exchange started the week down 0.23% on Monday, seeing no reason to rejoice in the global macroeconomic picture drawn by the session’s indicators.

The star CAC 40 index fell 14.91 points to 6,347.77 points. On Friday, it had recovered more than 2%, which had enabled it to end the week on an increase of 1.67%.

In Europe, the war in Ukraine and the impact of sanctions against Russia prompted the European Commission to drastically reduce its growth forecasts for the euro zone (-1.3 points to 2.7%) this year, due in particular to higher than expected inflation. The Commission also doubled the acceleration in price increases in the new 2022 forecasts, to 6.1%.

This is “one of the largest drops in forecasts”, which are also still subject to “high uncertainty” according to the European Commissioner for the Economy, Paolo Gentiloni.

“What is problematic is the impact of inflation on purchasing power” and therefore consumption, the engine of growth, said Vincent Manuel, director of investments at Indosuez Wealth Management. He observes that investors’ attention is now focused on the risks of recession more than on high inflation.

These indicators only confirm the economic trend of the last few weeks, as well as the others that have been published around the world during the day.

In China, retail sales experienced their biggest drop in two years in April while unemployment rose sharply, while the largest metropolises are paralyzed by health confinements.

In the United States, manufacturing activity in the New York region contracted sharply in May, for only the third time since the economic recovery in the summer of 2020, while the morale of industrialists is at half mast.

Renault sells Avtovaz

The Renault automobile group has confirmed the sale of its stake in the Russian manufacturer Avtovaz to the Russian State and specified that it would keep the option to buy back its shares for six years. Its title remained stable (-0.04% to 23.59 euros), after spending the entire session in the red.

Automotive suppliers like Faurecia (-1.18% to 21.70 euros), and Valeo (-1.76% to 17.58 euros) lost more.

Casino separates from GreenYellow

Casino took 4.76% to 18.92 euros, after confirming the launch of a sale process for GreenYellow, its subsidiary dedicated to the production of solar energy, in order to sell the company “by the end of the year. ‘year”. The action of the distributor had already taken more than 8% on Friday.

Energy producers Engie (+2.39% to 11.63 euros), EDF (+1.34% to 8.59 euros) or Voltalia (+1.21% to 20.90 euros), also progressed.

Valneva could lose Brussels

Valneva shares fell 19.09% to 9.65 euros, after the European Commission expressed its intention to terminate its supply contract for the vaccine against Covid-19 from the Franco-Austrian laboratory. The stock has fallen 60% since its high at the end of 2021.

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