Tensions on interest rates and fears of growth, the Cac 40 anchored in the red, Market news

The Paris stock market continues to decline in a move of risk aversion that is affecting all the world’s financial markets. The more offensive turn of the US Federal Reserve and the stricter health restrictions in China raise fears about the outlook for the global economy. At the European level, the 19 Stoxx 600 sector indices are in the red, starting with those of the basic resources (-3.6%). ArcelorMittal decreased by 3.8% and Eramet by 5.6%.

Half way through the session, the Bedroom 40 a decrease of 1.39% to 6,171.35 points on a turnover of 860 million euros. The Paris index is now losing 14% over the year and more than 16% compared to the all-time high of January 5 (7,384.86), approaching the bear market zone. the contracts future on US indices returns between 1.3% and 1.9%. Friday, the S&P 500 and the Nasdaq composite a fifth consecutive weekly decline, the longest streak since June 2011 and November 2012 respectively.

Chinese foreign trade almost silent

In Chinaexports rose 3.9% year-on-year in April, the weakest pace since June 2020while imports faltered against a backdrop of virtual paralysis of the economy linked to the tightening of sanitary restrictions on Shanghaiwhere the lockdown could be extended until the end of the month. Beijing is also hit by tougher restrictions† Prime Minister Li Keqiang also warned about the labor market situation, which he described as ” complicated and serious Which doesn’t stop the authorities from sticking to their “zero-covid” policy.

To the UNITED STATES, the US Federal Reserve announced a 50 basis point rate hike on Wednesday in a bid to halt its sharpest price hike in 40 years. Last month’s higher-than-expected job creations also have the “hawks” camp within the fed† In the bond market, the yield on the US 10-year bond fell by 4 basis points to 3,1788%, the highest level since the end of 2018.

Putin denounces ‘unacceptable threats’

Inflation is back on the agenda this week with the release on Wednesday of the consumer price index for April in the United States. The consensus set by Bloomberg is for a slowdown in the rise to 8.1% year-on-year from 8.5% in March, giving hope that the peak has been reached. Several Fed officials will speak this week as President Biden prepares to make a statement on inflation on Tuesday.

In Europe, the Russian president justified his intervention in Ukraine by the aggressive attitude of western countries towards the Russia† In his opening speech at the 1945 Victory Celebrations, Vladimir Poutine said that the Russian troops are defending the homeland against a ” absolutely unacceptable threat “. According to him, the Russian troops continue in Ukraine the fight against Nazism, emphasizing the importance” to do everything so that the horror of a world war does not happen again

Chance on the calendar, this 9 May is also Europe Day. G7 leaders pledged on Sunday to gradually move towards an embargo on Russian oiland thereby agrees with the proposals of the chairman of the European CommissionUrsula von der Leyen† However, this proposal is met with Hungary’s refusal. TotalEnergies fell 1.1% in the wake of the 2% drop in the barrel of Brent from the North Sea.

JPMorgan for sale in Europe

Cyclical stocks are under pressure. Schneider Electric loses 2.7%, Renault 1.9%, Michelin 1.6% and Faurecia 2.6%.

Largest increase SRD, Europeapic increased by 5.9%. JPMorgan has started monitoring the active pharmaceutical ingredient specialist, split from Sanofi, with a recommendation to “consider” pure for 17 euros. Sanofi returns for its part 1.2%.

Solutions 30 wins 1.3%. Exane BNP Paribas took over the title of specialist in solutions for new technologies to “outperform”, citing a new cycle of profitable growth and a possible acquisition. The note’s author refers to the group’s decision to authorize Rothschild to find a reference investor.