The Paris Stock Exchange is trading at two-month lows, while US index futures point to a further decline on Wall Street at the open. The more aggressive turnaround by the US Federal Reserve and the tightening of health restrictions in China are renewing fears of a downturn in the global economy, or even a recession. At the European level, the 19 Stoxx 600 sector index is in red, starting with the indicators for leisure travel (-4.2%) and basic resources (-3.9%). Arcelor Metal by 3.8% and aramit By 5.6%.
Around 2:30 PM Bedroom 40 It decreased by 2% to 6,132.94 points in a turnover of 1.4 billion euros. The Paris index is now losing 14.3% over the year and about 16.5% compared to its absolute record on January 5 (7384.86), bringing it close to “bear market” territory. Contracts future On US indices yield between 1.3% and 2.2%. Friday, Standard & Poor’s 500 and the Nasdaq Composite It posted a fifth consecutive weekly decline, the longest streak since June 2011 and November 2012, respectively.
Reflecting investor concerns, the iTraxx index, which measures the cost of default protection on European corporate bonds, reached its highest level since 2020. European stocks surprisingly held up until last week, so it’s no surprise that they are caught up in bad news As the European Central Bank prepares to tighten monetary policy, says Est Dwek, head of investments at Flowbank. Strategists at Morgan Stanley also believe that risks are increasing on the margins of European companies.
China’s foreign trade is almost deadlocked
In China, exports rose 3.9% year on year in April, their weakest pace since June 2020, while imports stagnated amid an almost complete paralysis of the economy linked to the tightening of health restrictions. In Shanghai, where the reservation could be extended until the end of the month. Beijing has also come under tighter restrictions. Premier Li Keqiang also warned of the labor market situation, which he described as ” complex and dangerous Which does not prevent the authorities from adhering to the “zero Covid” policy.
In the US, the Federal Reserve announced last Wednesday a 50 basis point increase in interest rates in an attempt to stem the steepest rise in rates in 40 years. Last month’s higher-than-expected job creation further strengthened the “hardline” camp within the Fed. In the bond market, the yield on US 10-year notes shrank by 3 basis points to 3.1548%, the highest level since the end of 2018.
Putin denounces “unacceptable threats”
Inflation will be discussed again this week with the release of the Consumer Price Index for April in the US on Wednesday. The consensus reached by Bloomberg is a slowdown in the rise to 8.1% in one year after 8.5% in March, giving hope of a peak. Several Federal Reserve officials are scheduled to speak this week, as President Biden prepares to deliver a statement on inflation on Tuesday.
In Europe, the Russian president justified his intervention in Ukraine with the aggressive attitude of Western countries towards Russia. In his inaugural address at the 1945 Victory Celebrations, Vladimir Putin said that Russian forces were defending the Fatherland from ” Totally unacceptable threat “.According to him, the Russian forces continue the fight against Nazism in Ukraine, emphasizing the importance of ” To do everything so that the horror of world war does not happen again “.
Calendar Chance, May 9th is also Europe Day. On Sunday, the leaders of the Group of Seven countries pledged to move gradually towards imposing an embargo on Russian oil, joining the proposals of European Commission President Ursula von der Leyen. However, this proposal comes against Hungary’s refusal. total energy It fell 3.3% following the 2.7% drop in the price of a barrel of Brent oil from the North Sea.
JPMorgan to buy on Euroapi
Cyclical stocks are under pressure. Schneider Electric lose 3.1%, Renault 1.7%, Michelin 1.8% and foresia 2%.
largest rise in SRD, yurabi by 6.6%. JPMorgan began monitoring the specialist in active pharmaceutical ingredients, separated from Sanofi, with a “overweight” recommendation with a pure target for 17 euros. Sanofi Returns on its part are 1.2%.
Alstom 2.3% gain. The railway equipment manufacturer has announced that it has won an order worth nearly €2.5 billion from a rail operator in Baden-Württemberg in southwest Germany.