The Cac 40 reduces its lead and falls below 6,000 points while waiting for the return of Wall Street

The flagship index of the Paris Stock Exchange extends its rebound from the day before, without however managing to regain the threshold of 6,000 points, abandoned last Thursday. Investors are seeking a return to risky assets after the Cac 40 fell nearly 10% in three weeks, but analysts are urging caution as many strategists insist markets have not fully integrated the prospect of a recession. According to them, the recent rebound is just a ” bear market rally “, while the Cac 40 passed Thursday evening in the bear market after a fall of 20% compared to its peak of January 5.

Around 2:30 p.m., the Bedroom 40 gained 0.89% to 5,972.85 points, after a high of 6,032.24 (+1.89%), in a business volume of 1.1 billion euros. The contracts future on American indices posted increases of between 1.4% and 1.6%, while the S&P500 fell 5.8% last week for its biggest weekly decline since March 2020, sinking further into bear market territory. Wall Street was closed on Monday. Kellogg advance of nearly 7% in pre-market following the decision of the board of directors to split the group into three separate entities.

Towards a recession in 2023?

Goldman Sachs analysts now estimate the probability of a recession in the United States in 2023 at 30%, against 15% previously, against a backdrop of record inflation and an economic environment weakened by the invasion of Ukraine by the Russia. Berenberg’s strategists, for their part, retain as their basic hypothesis the prospect of a ” temporary recession in the United States, the euro zone and the United Kingdom in 2023.

Christine Lagarde recalled Monday that the European Central Bank plans to raise its main interest rates in July, then in September, and warned against the risks of a disorderly correction in the financial and real estate markets in Europe. She also defended the project to set up a tool intended to limit the risk of fragmentation in the euro zone.

St. Louis Federal Reserve Chairman James Bullard warned that inflation expectations “ could spin out of control without credible Fed action “. The market is also awaiting Jerome Powell’s monetary policy speech before both chambers of Congress on Wednesday and Thursday.

Air Liquide relies on renewable energy

Liquid air increased by 2.3%. The industrial gases giant has signed a long-term renewable power purchase agreement with Vattenfall in the Netherlands for approximately 115 MW of offshore wind capacity under construction. An agreement that echoes the group’s strategy of betting on hydrogen to decarbonize the economy.

Eramet gets 8%. The mining group has announced the signing of a memorandum of understanding for the sale of its subsidiary Aubert & Duval, which specializes in high-performance alloys, to a consortium made up of Airbus, Safran and Tikehau Ace Capital, on the base with an enterprise value of 95 million euros.

Soitec rises 3.1%. The Strategic Participation Fund (FSP) has announced that it has entered the capital of the producer of components for the electronics industry, by taking a stake of approximately 150 million euros.

Finally, Valneva takes another 16.7%, still supported by the announcement yesterday of the entry of Pfizer in its capital up to 8.1% at a price of 9.49 euros per share.

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