Cac 40 fell more than 1%, betting tensions and fears of growth, market news

The Paris Stock Exchange emphasizes its losses in the movement of not accepting the risk that affects all financial markets. The more aggressive turn of the US Federal Reserve and the tightening of health care restrictions in China do fuel concerns about the prospects for the global economy. At European level, the 19 Stoxx 600 sector indices are in the red, starting with the Basic Resources Index. ArcelorMittal fell by 3.6% and Eramet by 4.9%

At 11:20 Bedroom 40 fell 1.07% to 6191.33 points with a business volume of 720 million euros. The Paris index is now losing about 14% for the year and more than 16% compared to the absolute record of January 5 (7384.86) and is approaching the zone of “bear market”.

China’s foreign trade is almost at a standstill

In April, China’s exports grew by 3.9% year on year, the weakest since June 2020, while imports stagnated amid almost economic paralysis due to tightening health restrictions in Shanghai, where quarantine could be extended until the end of the year. moon. Prime Minister Li Keqiang also warned about the situation on the labor market, which he described as ” complex and serious Which does not prevent the government from holding on to its “zero Covid” policy.

In the United States, the US Federal Reserve announced last Wednesday an increase in its interest rates by 50 basis points, trying to stop the biggest price increase in 40 years. Last month’s creation of higher-than-expected jobs further strengthened the Fed’s “hawk” camp. In the bond market, the yield on 10-year US bonds fell by 4 basis points to 3.1788%, which is the highest level since the end of 2018.

Putin condemns “unacceptable threats”

Inflation will be discussed again this week with the publication on Wednesday of the consumer price index for April in the US. The consensus established by Bloomberg predicts a slowdown to 8.1% in one year after 8.5% in March, which gives hope that the peak has been reached. Several Fed officials are due to speak this week, and President Biden is due to make a statement on inflation on Tuesday.

In Europe, the Russian president justified his intervention in Ukraine by the aggressive attitude of Western countries towards Russia, interfering in the celebration of the 1945 victory, Vladimir Putin said that Russian troops are defending the homeland of “absolutely unacceptable.” threat “at the opening of the military parade on Red Square. According to him, Russian troops continue to fight Nazism in Ukraine, emphasizing the importance of ” do everything possible so that the horrors of world war do not happen again “.

Chance of the calendar, this May 9 is also Europe Day. G7 leaders pledged on Sunday to move gradually towards an embargo on Russian oil, thus joining the proposals of European Commission President Ursula von der Leyen.

JPMorgan for purchase in Europe

Cyclical stocks are under pressure. Alstom loses 2.6%, Renault 2.7% Michelin 2.2% and Fauretia 4.1%.

Danone decreased by 1.3%. The agri-food giant has announced that it has reached an agreement to sell its 25% stake in Yashili to China’s Mengniu, as well as a 20% stake in the Inner Mongolia Dairy joint venture.

The largest increase in SRD, Europe increased by 5.8%. JPMorgan has started monitoring an active pharmaceutical ingredients specialist, separate from Sanofi, with a recommendation to “gain weight” for 17 euros. Sanofi in turn gives 1%.

Solution 30 an increase of 1.1%. Exane BNP Paribas has taken the title of specialist in solutions for new technologies with “higher performance”, referring to a new cycle of profitable growth and possible acquisitions. The author of the note refers to the group’s decision to instruct Rothschild to find a reference investor.