Cac 40 down 1.7%, Snap down 40% on Wall Street and Abercrombie nearly 30%, market news

The opening of Wall Street did not help the Paris Stock Exchange, on the contrary. in Bedroom 40, which added just over 1% yesterday, lost everything and even more today, falling 1.66% to 6,253.14 points. Whether in Europe or the United States, the stock market recovery is fading away these days.

There is no trust. “The market has tried to bounce back several times over the past few weeks, but that momentum has consistently failed in the session and the next day.recalls Ross Mayfield, an analyst at Baird.. The bar is now higher to return to a steady rise in the indices, taking into account all the current headwinds.” such as fear of a recession in the United States, supply chain problems, soaring energy prices and inflation at a time when central banks, precisely because of rising prices, can no longer inject liquidity and must instead tighten monetary policy , make money more expensive by raising interest rates to appease demand.

The S&P 500 index is down 2% today, while the Nasdaq Composite index of tech stocks is down more than 3%. Snap (-40%) announced that its second-quarter revenue and earnings targets will not be met, in part due to the challenging macro environment that discourages advertisers from spending money on ads. Following this profit alert Snap, the actions of other social networks are also taking a hit. Meta (Facebook) noticeably lost 9%. Abercrombie & Fitch (-29%) also issued a warning about its financial results. With its first-quarter earnings coming in stronger than expected, the U.S. ready-to-wear company has revised down its 2022 turnover target, which is now expected to be only marginally better than last year.

Activity in Europe is declining

There was no major inflation data on Tuesday, but data released this morning in Europe shed some light on the evolution of industrial and service activity, according to purchasing managers’ surveys. Thus, according to preliminary data for May, growth in the euro area has slowed down: the PMI index fell from 55.8 to 54.9 points in a month, which is lower than the consensus forecast of 55.3 points. The slowdown, which affects both the manufacturing component (54.4 points against 55.5 in April, the lowest since November 2020) and the service sector (56.3 against 57.7).

“Many supply constraints and declining demand for manufactured goods, coupled with strong price pressures, are hampering the growth of the sector. However, the region’s economy continues to be supported by a thaw in demand for services that has accumulated prior to the gradual lifting of COVID-19 restrictions.” explains Chris Williamson of S&P Global.

Air France-KLM begins capital increase

On Cac 40, only a few companies closed higher today, mostly defensive stocks such as Eurofins Scientific Where Orange.

Subsidiary of CFM, owned Saffron (-4.2%), and General Electric will face delays in the production of its aircraft engines, according to Reuters.

Advertiser Publicis fell over 7%.

Apart from Cac 40, Air France-KLM (-20.6%) started a capital increase of 2.26 billion euros by issuing shares at a price of 1.17 euros per unit, while retaining the right of preemptive subscription. The carrier is holding a general meeting of shareholders this afternoon.