The Paris Stock Exchange is retreating on the first exchanges. The euphoria on Wednesday night was replaced by a “sell-off” in the United States and Asia, and the central bank’s strategy to counter inflation was a concern. The April US Employment Report may provide some answers about the state of the US economy.
Shortly before 9:45 p.m. Bedroom 40 lost 1.53% to 6,270.78 points with a business volume of almost 500 million euros.
With the exception of Tokyo, which reopened after three holidays, Asian markets fell again this morning, China’s CSI 300 fell 2.5% and Hong Kong’s Hang Seng Stock Exchange 3.8%. Beijing’s reaffirmation of its commitment to its “zero Covid” policy heightens aversion to risky assets.
On Wall Street, the S&P 500 fell 3.6% on Thursday and the Nasdaq Composite fell by almost 5%, the biggest drop since June 2020 to its lowest level since November 2020. On the eve of the index of large technology stocks rose more. than 3%.
Inflation control can be “painful”
Thus, the return of risk aversion occurs after the Federal Reserve decided to raise interest rates “only” by 50 basis points, excluding the prospect of raising by 75 basis points until September.
Investors fear that central banks will not act fast enough to try to stem the price spike, but fear that too sharp a rise will eventually slow growth. Jerome Powell acknowledged Wednesday night that inflation control risks being ” to hurt In the bond market, last night’s 10-year US bond yield closed its first close above 3% since 2018, reflecting continuing fears of a quick tightening of monetary policy, and remained at 3.06% this morning.
The US Department of Labor will release its employment report last month at 2:30 p.m. The consensus formed by Bloomberg envisages the creation of 380,000 jobs after 431,000 in March and a reduction in the unemployment rate by 0.1 points to 3.5%. The average hourly wage is expected to increase by 0.4% in one month and by 5.5% in a year. In this case, ” good news bad news for stock markets, as good performance will reassure the Fed to accelerate the normalization of monetary policy.
JCDecaux and Euroapi break
The biggest drop in SRD, JCDecaux a drop of 7.3%. The 50.3% increase in turnover in the first quarter was offset by a forecast of organic sales growth of 15% in the second, which is lower than analysts expect due to the impact of health restrictions in China. For Berenberg, the external communications team has certainly had a good start to the year, but the prospects are slim. Societe Generale has reduced the target price for the title from 17.60 to 16.90 euros, while maintaining its view of “sell”.
Axa loses 1.77% The insurer confirmed its goals, recording a 1% increase in turnover to 31.3 billion euros in the first quarter in an uncertain geopolitical context related to the conflict in Ukraine.
rating an increase of 1.3%. In the first quarter, the reinsurer recorded a net loss of 80 million euros, which was punished by the reserve related to the conflict in Ukraine and a series of natural disasters, but the volume of gross written premiums jumped by almost 10% to 4.7 billion euros. .
A subsidiary of Sanofi, which specializes in active pharmaceutical ingredients Europe increased by 5% during the first trading session.