Concerns about the outlook for the global economy continue to haunt markets, and recent shocks in stock market indices reflect high volatility, prompting investors to overreact to the slightest good news. But global sentiment remains pessimistic amid galloping inflation and tightening monetary policies of leading central banks.
In New York, the S&P 500 fell 2% on Tuesday and the Nasdaq Composite almost 3%, while this morning they were followed by Asian markets. China’s CSI 300 fell nearly 1% as it approached closure. Although the quarantine period for travelers entering the country has been halved, some note that the actual resumption of activity remains dependent on the zero Covid policy, which is still in place.
The prospect of a recession haunts the markets, and Jerome Powell acknowledged that it cannot be ruled out in the United States. This is evidenced by the latest US consumer sentiment, which fell to a minimum in 16 months in June.
Levels that are rare outside of a recession
” The days are repetitive and similar to economic indicators. This time, it is the business climate of the federal states of Richmond and Dallas, as well as the Conference Board’s consumer confidence indicators, that change in June and fall to levels that are rarely seen outside of a recession. “, Say Thomas Bauer and Veronica Riches-Flores from the Riches Flores study.
Fed officials are trying to minimize this risk. New York Fed President John Williams and his San Francisco counterpart, Mary Daly, have acknowledged the need to reduce inflation, insisting that a soft-landing economy is still possible.
Closer to home, Christine Lagarde confirmed that she expects key rates from the European Central Bank to be raised by 25 basis points in July, and said the Governing Council is ready to step up its action if necessary. Jerome Powell, Christine Lagarde, Bank of England Chairman Andrew Bailey and Cleveland Fed President Loretta Mester are due to speak at the ECB’s annual forum in Sintra, Portugal, on Wednesday.
The macroeconomic program of the day is dominated by the first estimate of the evolution of consumer prices in June in Germany, as well as the latest publication on US GDP growth in the first quarter. These two figures will be published at 14:00 and 14:30, respectively, after a series of indicators on economic sentiment and consumer sentiment in the euro area.
New boss for EssilorLuxottica
Ipsen announced that the Food and Drug Administration, the U.S. health authority, has given priority consideration to the application for approval of the study drug palovarotene for the treatment of patients with progressive fibrodysplasia (FOP).
EssilorLuxottica. The board appointed Francesco Milleri, the current managing director of the manufacturer of corrective lenses and optical instruments, as chairman. The appointment came after the death of Leonardo Del Vecchio on Monday.
Eurasio announced the sale of 51% of the capital of American Trader Interactive, which it still holds on the basis of an estimate of 1.9 billion dollars (1.8 billion euros).
Among the ratings of analysts Exane BNP Paribas fell Stellantis from “advance” to “neutral”.