The Paris Stock Exchange was down 1.10% on Monday, weighed down by the drop in activity in China which penalizes luxury and the defensive positions taken before the meeting of the American central bank.
The star CAC 40 index fell 71.95 points to 6,461.42 points at 9:40 a.m. Last week ended with a decline of 0.72% of the index, which lost 1.89% during the month of April.
The New York Stock Exchange recorded even more severe losses on Friday, the Dow Jones dropped 2.77%, or nearly 5% over the month of April. For its part, the Nasdaq tumbled more than 4% and more than 13% in April, its worst fall since 2008.
The markets continue to follow the shocks of an uncertain environment, dominated by a forced monetary tightening in the United States, an inflation whose deceleration will only be very gradual, the war in Ukraine and its consequences in terms of sanctions and prices of raw materials, as well as the health situation in China, summarizes Xavier Chapard, strategist for LBPAM.
Among the concerns hanging over the Parisian coast: a decline in manufacturing activity in China, which fell in April to its lowest level since February 2020 due to the confinements of the country’s major cities.
In Beijing, the authorities announced on Saturday to strengthen measures intended to fight against Covid-19 by making new tests compulsory to access certain public places.
The continuation of these restrictions within the country could put more pressure on the already proven supply chain and press even more on global inflationary pressures, underlines Vincent Boy, analyst of IG France.
The situation particularly affected the luxury sector, dependent on the Chinese market, including Kering (-2.34%), Herms (-2.40%) or LVMH (-1.34%).
Investors have especially in mind the monetary policy meeting of Tuesday and Wednesday of the US central bank.
After a 0.25 percentage point increase in its key rates in March, the Federal Reserve will this time, barring any surprises, lead to an increase of half a percentage point, to bring them within a range of 0.75 % 1%.
The institution should also mark the beginning of the reduction of its balance sheet, all in an attempt to fight against inflation at its highest for 40 years in the United States.
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Publications of quarterly corporate results continue this week, with notably BNP Paribas on Tuesday, Airbus on Wednesday, and ArcelorMittal on Thursday.
New order for Airbus
The Australian airline Qantas will order 52 planes from the European aircraft manufacturer Airbus and has taken options to purchase 94 other machines, in a project to link Sydney New York and London non-stop. This announcement did not save its action which sold 0.66% to 104.84 euros.
Beginning of the takeover bid for CNP Assurances
La Banque Postale announced on Monday the opening of the simplified takeover bid (OPA) for CNP Assurances (+0.10% to 20.90 euros), an operation presented at the end of last October and aimed at creating a large public financial pole.