The control room of Euronext, the company that manages the Paris Stock Exchange, in La Défense (AFP / ERIC PIERMONT)
The Paris Stock Exchange reduced its enthusiasm on Monday morning, falling into the red after a sharply higher opening, the technical rebound in sight on Wall Street no longer sufficient to motivate investors who are increasingly fearful of recession.
At 10:50 a.m., the CAC 40 index fell 0.06% to 6,281.27 euros, after starting the week up more than 1%. On Friday, the Parisian rating had rebounded slightly by 0.20%, but posted a negative balance of 1.22% over the week.
European markets lost ground last week but held up better than US markets, although the war in Ukraine is clouding the economic outlook for the euro zone.
Uncertainties regarding the outlook for global growth and inflation continue to complicate the way forward for investors.
“As long as the markets have not been reassured about the macroeconomic trajectory, it is likely that the sessions in the red will continue to follow one another. There will be, here and there, technical rebounds. But everything suggests that it will be fleeting,” said Christopher Dembik, director of macroeconomics research at Saxo Bank.
In addition, “at the health level, when we thought we were (almost) out of the coronavirus pandemic, another disease could take over”, monkey pox, observes John Plassard, investment specialist at Mirabaud.
The morale of German entrepreneurs experienced a second consecutive increase in May, after a historic drop in March caused by the war in Ukraine, but fears about the future economy remain significant.
This week, investors will look to the minutes of the last meeting of the US central bank’s monetary policy committee to determine whether or not to expect further tightening of monetary conditions.
The President of the European Central Bank (ECB) Christine Lagarde for her part indicated that the first rate hike should be decided in July by the institution.
Vinci backs down, a subsidiary targeted for “private corruption”
Vinci lost 2.12% to 89.03 euros. Its subsidiary Vinci Construction France was indicted in February for “private corruption”, the Nanterre prosecutor’s office said on Friday.
© 2022 AFP
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