Cac 40: Uncertain trend on Paris Stock Exchange, worrisome recession threatens

(BFM Bourse) – The Paris Bourse is struggling to show a clear trend at noon. Rising sharply on the first exchanges, CAC 40 is now approaching equilibrium, fears of a recession occupy the minds of investors to this day.

The morning bounce is more than fragile. The Paris Stock Exchange, which started this week with a sharp rise, has weakened in the face of recession fears looming on the horizon of the stock market sky. The CAC 40 is fluctuating around the 6,284-point equilibrium around 12:15 pm after approaching the first bourses of the week with more than 1% gains. On Friday evening, the Paris market stellar index rose slightly by 0.20%, which is far from enough to offset the weekly decline (-1.22%).

The Paris rating is still guided by concerns about inflation and the threat of a recession, as well as the mood of the depressed US stock market. The S&P 500, managers’ favorite index, ended Friday night for the seventh straight week in negative territory, marking an unprecedented consistency since 2001. down 20% or more from the previous peak in April last year. It’s the eighth consecutive week in the red for the Dow… Investors realize they’re not done with inflation and are now worried about consumption resistance, a major driver of the economy, following a warning issued last week by US distributor Target (sanctioned by a 25 percent drop stock market) and even world leader Walmart, the latter suggested that their profits are being subjected to a scissor effect due to rising costs and slowing demand.

In this context, the minutes of the last meeting of the monetary policy committee of the US central bank will be under the close attention of operators. They will try to detect the slightest sign of a possible tightening of the Fed’s tone on key rates.

In Europe, German business morale was surprisingly good in May, thanks to a rebound in service sector activity, according to an Ifo survey. Thus, for the second month in a row, the business climate is improving, despite inflationary pressures, after a strong fall in March caused by the war in Ukraine. The impact of inflation on the global economy is in the spotlight as European Central Bank (ECB) President Christine Lagarde said the decision on the first interest rate hike should be made in July, along with the end of negative interest rates by the end of the third quarter.

In terms of value, Eramet recovered more than 4%. Shares of TotalEnergies rose 1.72% on the strength of black gold prices.

Sanofi loses 0.51% as the US Food and Drug Administration (FDA) approved dupixent (dupilumab) 300 mg once weekly for the treatment of eosinophilic esophagitis in patients over 12 years of age weighing at least 40 kg.

Publicis returns almost 2%, penalized by a remark by Morgan Stanley, which downgraded its opinion of the file as undervalued with a target price of 48 euros.

A red light CAC 40, Vinci lost more than 4% while several of its subsidiaries were accused of “private corruption” in February, Nanterre’s parquet flooring said Friday.

In the foreign exchange market, the euro, which was in a quandary after the US Federal Reserve’s action on its rates, accelerated higher against the US dollar at $1.0624 after the ECB’s monetary policy announcements.

Oil prices remain well-positioned for a 1% gain, helped by a lull in health in China, with Brent at $113.92 and WTI at $111.50.

Sabrina Sadgi

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