The Paris Stock Exchange is coming back to life this Friday after theoretically entering the “bear market” the day before with a drop of more than 20% in the Cac 40 compared to its peak on January 5. Global financial markets are on the verge of completing their worst week since March 2020, weakened by fears of recession.
At 9:45 a.m., the Bedroom 40 takes 0.63% to 5,923.15 points in a business volume of 380 million euros.
The contracts future on American indices gain between 0.6% and 0.8% while Wall Street suffered its largest drop since the end of 2020 on Thursday. Asian markets ended in scattered order this morning with a 1.8% decline in the Nikkei 225 Japanese and a 1.4% gain from the Chinese CSI 300.
The Bank of Japan isolated
Recession fears spread to markets as monetary tightening increased, with the notable exception of the Bank of Japan, which kept interest rates at -0.10% and the yield target for the 10-year government loan close to zero.
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 created a surprise by proceeding with a hike of 50 basis points of its main key rate, the first since 2007. For its part, the ECB is preparing to toughen its tone in July.
EssilorLuxottica share buyback
The latest indicators for housing, jobless claims and manufacturing activity in the Philadelphia area, which contracted for the first time since the spring of 2020, have bolstered feelings that the US economy could technically come closer. of a recession after a contraction in GDP in the first quarter.
At the end of the morning, the market will monitor the final inflation figures for last month in the euro zone, estimated at 8.1% over one year at first glance, against 7.4% in April. In the United States, this afternoon, it will be industrial production in May and the index of leading indicators for the same month.
EssilorLuxottica earns 2.5%. 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%. Oddo BHF raised its recommendation on the airline’s stock from “underperforming” to “neutral”.
Michelin increased by 2.4%. The same research office reaffirmed its opinion of “outperformance” with a price target readjusted to 40 euros in order to take into account the division of the nominal by four.