The Paris Stock Exchange’s flagship index continues to rebound from the previous day, but failed to cross the 6,000-point mark, which was abandoned last Thursday. Investors have returned to risky assets after Cac 40 fell nearly 10% in three weeks, but analysts are urging caution, with many insisting that markets have not fully appreciated prices in the run-up to the recession. According to them, the recent rebound is just ” rally in the bear market “While Cac 40 entered the bear market on Thursday night after falling 20% from its peak on January 5th.
Shortly after 4 p.m. Bedroom 40 increased by 0.82% to 5968.77 points after a maximum of 6032.24 (+ 1.89%) with a business volume of 1.47 billion euros. The three major New York indexes are recovering between 1.7% and 3% after the weekend, which lasted until the holiday on June 16. in S & P500 last week fell 5.8%, the biggest weekly loss since March 2020 in response to the Fed’s rate increase of 75 basis points, the highest since 1994.
Towards a recession in 2023?
Goldman Sachs analysts now estimate the probability of a recession in the United States in 2023 at 30%, up from 15% earlier, amid record inflation and an economic environment weakened by Russia’s invasion of Ukraine. Berenberg’s strategists, for their part, retain the perspective as their main hypothesis. temporary recession in the United States, the eurozone and the United Kingdom in 2023 “Lack of belief in”victory over inflation‘, the positive outcome of the Russia-Ukraine conflict and the visibility of future risks associated with Covid-19, it is difficult to assume targeted risk on equities without hedging “, they write.
Christine Lagarde recalled on Monday that the European Central Bank plans to raise key interest rates in July and then in September, and warned of the risks of chaotic adjustment in financial and real estate markets in Europe. She also defended a project to create an instrument designed to limit the risk of fragmentation in the euro area.
The head of the Federal Reserve System of St. Louis, James Bullard, warned that inflation expectations ” may get out of control without reliable action by the Fed The market is also awaiting Jerome Powell’s speech on monetary policy before both houses of Congress on Wednesday and Thursday.
Air Liquide relies on renewable energy sources
Liquid air increased by 2.7%. The industrial gas giant has signed a long-term agreement to purchase electricity from renewable sources with Vattenfall in the Netherlands for about 115 MW of offshore wind power under construction. An agreement that echoes the group’s strategy to rely on hydrogen to decarbonise the economy.
Eramet occupies 7.1%. The mining group has announced the signing of a memorandum of understanding for the sale of its subsidiary Aubert & Duval, which specializes in high-quality alloys, a consortium of Airbus, Safran and Tikehau Ace Capital, based on the company. worth 95 million euros.
Soitec increases by 3.5%. The Fund for Strategic Participation (FSP) has announced that it has entered the capital of the manufacturer of components for the electronics industry, taking a share of approximately 150 million euros.
finally, Valneva another 16.3%. Its managing director, Frank Grimo, told BFM Business that its Lyme disease vaccine could become a “blockbuster” with sales of more than 1 billion euros. The group announced yesterday that Pfizer would enter its capital at 8.1% at a price of 9.49 euros per share.