Dead calm this Wednesday on the stock market, the Cac 40 contenting itself with evolving around its closing levels the day before, in a very hollow market of less than 700 million euros. The two statistics published in the morning, although linked to inflation, a sensitive subject at the moment, have in no way influenced the trend. It must be said that the figures are broadly in line with expectations, even if they confirm the current upward movement in prices. In the UK, inflation is at 40-year highs, at 9% in April year on year. In the euro zone, it was symbolically revised downwards, while remaining at extremely high and stable levels over one month, at 7.4%, against an initial estimate of 7.5%.
In New York, futures contracts suggest a small consolidation of the indices, from 0.1% to 0.50%, after a very good session the day before. A lot of caution too, as Jerome Powell confirmed yesterday, in the context of an interview with wall street journal, that the Fed will continue to tighten its monetary policy until inflation falls to 8.3% over one year in April. It will thus support any necessary interest rate hikes until the targets start to be met, “ there will be no hesitation about it “.
Between correction and bear market
” There is a big difference between market corrections and bear marketss, believes Matt Stucky of Northwestern Mutual Wealth Management. The difference being that bear markets are almost always associated with a recessionary macroeconomic environment, or at least inevitably with a 6-12 month horizon. We do not foresee such a scenario at the moment. »
Initiatives are also hampered by the latest news from China. If the health situation continues to improve in Shanghai, the cases of Covid are multiplying, on the contrary, around the metropolis, reports Bloomberg, which could lead to the implementation of additional restriction measures.
CMA CGM in the Air France-KLM airlock
On the business side, Air France-KLM announced a long-term partnership in air freight with the maritime transport group CMA CGM, which could take up to 9% of the capital of the company in the event of fundraising. The action gained 7%, leading the SRD.
Euronext takes 5%. The European platform published an increased margin in the first quarter and revised its costs downwards for 2022.
Elior loses 8%. Although activity rebounded in the first half of the year, inflationary pressures are weighing on the operating margins of the collective catering group, already degraded by the Covid pandemic. The customer loyalty rate is not going up and no dividend will be paid for this financial year, the new objectives of which have disappointed.