The Paris Stock Exchange closed sharply down 1.73% on Friday, still tormented by the risks of recession and monetary tightening by central banks, and thus ends its worst week since the start of the conflict in Ukraine.
The star CAC 40 index fell 110.04 points to 6,258.36 points, its lowest closing level since March 11. Over the week, it lost 4.22%, its worst drop since early March and the premises of the war in Ukraine.
Since January 1, it has cd 12.51%.
The Parisian coast started in the red, a trend which has increased, not without volatility, after the publication of the report on employment in the United States at 2:30 p.m. GMT.
The psychology of the market is clear, it has been a long time since the level of pessimism has been so high, comments Franklin Pichard, managing director of Kiplink Finance.
The conclusions of the meeting of the US Federal Reserve on Wednesday had yet seemed to give a new impetus to investors.
But Thursday’s US productivity figure, with a notable drop due to rising wages, rekindled fears of a more aggressive Fed in its fight against inflation, he said.
On Friday, investors put aside the bright spots in the US jobs report to focus on the more tense aspects.
First seduced by the 428,000 job creations in April, better than expected, they were cooled by the downward revision for March.
Economists have also expressed concern about a slight decline in the labor force participation rate (ratio between people employed or looking for work and the population of working age), which is increasing the pressure on the labor market.
Elsewhere, in Europe, the Governor of the Banque de France Franois Villeroy de Galhau considered it reasonable that the European Central Bank put an end to negative rates by the end of this year barring unforeseen shocks.
As a result, bond market rates continued to rise, both in the United States and in Europe. The interest rate on the ten-year American loan reached 3.08%. That in France rose 1.65%, the highest since 2014.
In France, they were 0.2% at the start of the year.
China weighs down luxury and JCDecaux
While voices have been pleading in recent months for an easing of restrictions, President Xi Jinping called on Thursday to continue the zero Covid policy and resolutely fight anything that calls this strategy into question, according to the New China agency.
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Companies that export to China, such as Pernod Ricard (-5.29% to 182.55 euros), Herms (-3.16% to 1,042 euros), Kering (-2.76% to 457.90 euros), continued to be under pressure. pressure. The three CAC 40 luxury companies are in the four worst stocks of the week and have lost around 10%.
Display giant JCDecaux has announced that it expects its growth to slow down over the rest of the financial year due to repeated confinements in China. It fell by 10.26% to 17.24 euros.
Tech under pressure
Technology stocks such as Dassault Systmes (-4.81% to 39.50 euros), Teleperformance (-3.62% to 317 euros) and Capgemini (-2.96% to 183.75 euros) were weighed down by the trend of the American Nasdaq, in sharp decline on Thursday (-5%) and still down on Friday.
Introduction Russia for Euroapi
Euroapi, a subsidiary of Sanofi specializing in active pharmaceutical ingredients, concluded its first stock market session with an increase of 8.11% to 13.51 euros.
For its part, Sanofi took 0.37% to 97.05 euros.