The Paris Stock Exchange begins the shortened week in the red as the International Monetary Fund (IMF) lowered its forecast for global growth to 3.6% in 2022 and 2023, from 4.4% and 3.8% estimated respectively in January. The institution cites the direct impact and fallout of the war in Ukraine. On Monday, the World Bank had done the same, also referring to the conflict between Moscow and kyiv.
Around 4 p.m., the Bedroom 40 lost 0.89% to 6,530.65 points in a business volume of 1.8 billion euros. In New York, the Dow Jones gains 0.89% and the Nasdaq Composite 0.70% after their slight decline the day before.
Dwindling global supplies of oil, natural gas and metals, as well as agricultural commodities produced in Russia and Ukraine, have already caused prices of these commodities to rise sharply globally, the IMF points out. . TotalEnergies thus gained 2.2% despite the fall in the barrel of Brent from the North Sea.
Conversely, questions about Chinese growth, exposed to the confinement of several major cities, fears about inflation and the prospect of an aggressive tightening of monetary policy by the Fed are weighing on stocks linked to luxury. Hermes fell by 4.2%, Kering by 1.1% and LVMH by 1.6%. The cosmetics giant L’Oreal, which must reveal its quarterly turnover after the closing, gives up 3.5%. The week will also be driven by the rise of quarterly corporate publications, in Europe and the United States.
German 10-year yield at highest since 2015
On the bond market, the yield on the 10-year German Bund, which serves as a benchmark in the euro zone, is hovering around 0.94%, a level not seen since 2015.
That of the US bond of the same maturity is trading at more than 2.91%, a high of three years, while James Bullard, the president of the Fed of St. Louis, declared that increases of 75 points of Fed funds rate base were not to be discounted. For him, the Federal Reserve must act quickly in its fight against inflation. He also reaffirmed that interest rates should be raised to 3.5% by the end of the year. On the
Virbac and Scor do the splits
score 6.5% drop. The reinsurer announced that its first quarter results will be impacted by the war in Ukraine with a double-digit charge in millions of euros for potential claims related to the conflict.
At the opposite extreme, Virbac advance of 8.4%. The veterinary laboratory raised its annual growth forecast after the 16.2% increase in its turnover in the first quarter. Oddo BHF raised its recommendation on the stock from “neutral” to “outperforming”.
Conversely, Crossroads climbed 2.1% as Berenberg moved from “hold” to “buy” on the stock. The broker believes that rising inflation poses a challenge for the food retail sector, but it will also reveal top performers, adding that the French group is well placed in such an environment.