The Paris Stock Exchange started the week down 0.23% on Monday, seeing no reason to celebrate in the global macroeconomic picture painted by the session’s indicators.
The star CAC 40 index fell 14.91 points to 6,347.77 points. On Friday, it had recovered more than 2%, which had enabled it to end the week on an increase of 1.67%.
In Europe, the war in Ukraine and the impact of sanctions against Russia prompted the European Commission to drastically reduce its growth forecasts for the euro zone (-1.3 points to 2.7%) this year, due in particular to inflation higher than expected. The Commission has also doubled the acceleration in price increases in the new 2022 forecasts, to 6.1%.
This is one of the largest drops in forecasts, which are also still subject to considerable uncertainty according to the European Commissioner for the Economy, Paolo Gentiloni.
What poses a problem is the impact of inflation on purchasing power and therefore consumption, the engine of growth, believes Vincent Manuel, director of investments at Indosuez Wealth Management. He observes that investors’ attention is now focused on the risks of recession more than on high inflation.
These indicators only confirm the economic trend of the last few weeks, as do the others that have been published around the world during the day.
In China, retail sales experienced their biggest drop in two years in April, while unemployment rose sharply, while the largest cities are paralyzed by sanitary confinements.
In the United States, manufacturing activity in the New York region contracted sharply in May, for only the third time since the economic recovery in the summer of 2020, while industrial morale is at half mast.
Renault cde Avtovaz
The Renault automobile group has confirmed the sale of its stake in the Russian manufacturer Avtovaz to the Russian State and specified that it would keep the option to buy back its shares for six years. Its title remained stable (-0.04% to 23.59 euros), after having spent the whole session in the red.
Automotive suppliers like Faurecia (-1.18% to 21.70 euros), and Valeo (-1.76% to 17.58 euros) lost more.
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Casino parts ways with GreenYellow
Casino took 4.76% to 18.92 euros, after confirming the launch of a sale process for GreenYellow, its subsidiary dedicated to the production of solar energy, in order to sell the company by the end of the year. The action of the distributor had already taken more than 8% on Friday.
Energy producers Engie (+2.39% to 11.63 euros), EDF (+1.34% to 8.59 euros) and Voltalia (+1.21% to 20.90 euros) also progressed.
Valneva could lose Brussels
Valneva shares fell 19.09% to 9.65 euros, after the European Commission expressed its intention to terminate its supply contract for the vaccine against Covid-19 from the Franco-Austrian laboratory. The stock has lost 60% since its high at the end of 2021.