This “No. 1 headwind” that kept Cac 40 from staying “green” for a week, Market News

A very disappointing end to the session on the Paris Stock Exchange. in Bedroom 40added more than 1% for most of the session, ended with a symbolic increase of 0.20%, 6,285.24 points, not without going into the red for a few moments.

Blame, again, on Wall Street, where the initial bounce didn’t hold up. At the time of closing in Europe Dow Jones loses 0.87%, S&P500 gives 0.8% and NASDAQ Composite 0.95%. The first index corresponds to the eighth week of growth in a row, the seventh – to the other two. In Paris, the Cac 40 lost 1.22% in five sessions after rising 1.67% the previous week.

” Hard times “

The markets have gone through a very difficult time in the last seven weeks, explains Art Hogan of National Securities, this is largely due to concerns about inflation and its impact on corporate margins, as well as what monetary means the Fed will use to enforce price controls.. Although not new, it is the number one headwind today. »

If the day started well, it is thanks to favorable news from China, where authorities are taking seriously fears of a strong potential slowdown due to the Covid epidemic. As such, the People’s Bank of China (PBOC) announced a notable cut in one of its main key rates to revive its economy, hit by the lockdown of the major cities of Shanghai and Shenzhen.

The five-year prime rate on the loan, which serves as a benchmark for the Chinese mortgage market, was cut by 15 basis points to 4.45%. This is the largest decline since the revision of the BPoC interest rate system in 2019. Economists had expected a fall of only five to ten basis points. ” While it certainly won’t be enough to counter all the headwinds slowing growth in the second quarter, it’s a step in the right direction and markets are reacting in anticipation of perhaps further easing. Carlos Casanova, senior economist at UBP for Asia in Hong Kong, told Reuters.

Richemont dives in Zurich

Luxury stocks, which account for more than 20% of the capitalization of the Paris Stock Exchange’s flagship index, were particularly affected by the Swiss stock exchange’s poor full-year results. richmont and his caution about a recovery in China, which has plummeted 13% on the Zurich Stock Exchange. Hermes lost 1.94%, LVMX 2.09% Kering 0.83% and Loreal 0.28%. On the other side of the list is the mall manager Unibile-Rodamco-Westfield (+3.2%) recovered somewhat after falling 11.5% the day before.

With the exception of CAC 40, Vallorec (+6.75%) benefited from a positive assessment from Oddo BHF, which raised its target price for the title of seamless pipe producer to EUR 16.50.

Air France-KLM (+1.1%) was again in the spotlight of the news. Two days after announcing a long-term strategic partnership with Marseille shipowner CMA CGM, the airline announced that it had entered into exclusive talks with Apollo Global Management for a €500 million capital investment in Air France’s operating subsidiary. , owner of a fleet of spare engines dedicated to its engineering and service activities. ” The proceeds from the transaction will allow Air France-KLM and Air France to partially pay off the perpetual obligations of the French state in accordance with the Interim State Assistance Framework. »