The Cac 40 weakened by the risk of a slowdown in China and a tightening of the Fed


The Paris Stock Exchange continues its decline Monday morning after a decline of 4.2% last week. The tightening of monetary policies and the tightening of health restrictions in China continue to fuel fears of a slowdown in the global economy, thus maintaining investor risk aversion. The fate of Ukraine will also be at the heart of the session on the occasion of Russia’s commemorations of the 1945 victory.

At 9:30 a.m., the Bedroom 40 lost 0.54% to 6,224.85 points in a business volume of 260 million euros.

Asian markets remained weighed down this morning by the stagnation of exports and the slowdown in Chinese imports to their weakest pace in 20 years against a backdrop of virtual paralysis of the economy linked to the tightening of health restrictions in Shanghai, but also in Beijing. Prime Minister Li Keqiang also warned about the labor market situation, which he described as ” complicated and serious “, which does not prevent the authorities from clinging to their “zero-Covid” policy. In Tokyo, the Nikkei 225 closed down 2.5%, while China’s CSI 300 fell 0.8%. The Hong Kong Stock Exchange was closed on Monday.

On Wall Street, the Dow Jones closed its sixth consecutive week of decline on Friday, while the S&P 500 and the Nasdaq Composite suffered their fifth weekly decline in a row, the longest bearish series for more than 10 years. The US Federal Reserve announced last Wednesday a 50 basis point hike in interest rates in an attempt to stem the sharpest price spike in 40 years. The higher-than-expected job creations last month also strengthened the “hawks” camp within the Fed. In the bond market, the yield on the US 10-year bond closed at 3.1265% on Friday, the highest since the end of 2018.

Towards a peak in US inflation?

Inflation will be discussed again this week with the publication on Wednesday of the consumer price index for April in the United States. The consensus established by Bloomberg is for a slowdown in the rise to 8.1% over one year after 8.5% in March, which gives hope that the peak has been reached. Several Fed officials are due to speak this week, while President Biden is due to deliver a statement on inflation on Tuesday.

In Europe, the main event will be Russia’s celebration of the May 1945 victory over Nazi Germany. Vladimir Putin is preparing to deliver a speech during which he could officially declare war on Ukraine, which would allow him to mobilize the reservists. Hazard of the calendar, this May 9 is also the Day of Europe. The leaders of the G7 countries pledged on Sunday to move gradually towards an embargo on Russian oil, thus joining the proposals of the President of the European Commission, Ursula von der Leyen.

JPMorgan for purchase on Euroapi

Cyclical stocks are the most affected. ArcelorMittal loses 3.6%, Schneider-Electric 1.3% and Renault 1.4%.

Euroapi increased by 6.4%. JPMorgan has started monitoring the active pharmaceutical ingredient specialist, spun off from Sanofi, with a recommendation to “overweight”. Sanofi cedes 1.5%

Danone down 1.2%. The agrifood giant has announced that it has reached an agreement to sell to Chinese Mengniu its 25% stake in Yashili as well as its 20% share in the joint venture Inner Mongolia Dairy.

Lagardere is balanced. The group has announced that the Qatari fund Qatar Holding does not intend to tender its shares to the takeover bid Vivendiwhich lost 0.7%.




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