New “red” session in Paris, -6% for the Cac 40 in four days

New “red” session in Paris, -6% for the Cac 40 in four days

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Fourth consecutive session of decline on the Paris Stock Exchange, the place’s flagship index is now down nearly 15% since the start of the year. This Monday, operators saw red numbers again, and for the same reasons: the slowdown in the Chinese economic engine, in a context of tightening health restrictions, the rise in US bond yields, two days before Crucial monthly statistics for inflation and war in Ukraine.

At the close, the Cac 40 fell another 2.75%, sending it below two other thresholds, those of 6,200 points and 6,100 points, to 6,086.02 points, the minimum of two months, in a traded volume of 3,800 millions of euros. Six values ​​managed to survive: orange, Crossing, scientific eurofins, Unibail-Rodamco-Westfield, Alstom Y Euroapi. The rail equipment manufacturer has announced that it has secured an order worth almost €2.5 billion from the rail operator of the Land of Baden Württemberg, in southwestern Germany. JPMorgan has begun monitoring the active pharmaceutical ingredient specialist, spun off from Sanofi, with a recommendation of “overweight” to aim for 17 euros. Note that Euroapi will remain in the Cac 40 until June 9.

slow Chinese exports

In New York, the dow jones loses 1.58% and, above all, the Nasdaq Composite 3.2% after closing its fifth consecutive weekly decline on Friday, the longest series in more than 10 years. The Federal Reserve announced last Wednesday a 50 basis point increase in its interest rates in an attempt to stop the rebound in prices. Higher-than-expected job creation in April also strengthened the hawk camp within the Fed. In the fixed income market, the return on the US 10-year bond is around 3.09%, thus maintaining its highest level since the end of 2018. Tech stocks are logically affected.

In China, exports rose 3.9% year-on-year in April, their weakest pace since June 2020, while imports stalled amid a near standstill in the economy linked to tightening health restrictions in Shanghai, where the confinement could be extended to the end. Of the month. Beijing is also affected by tighter restrictions. Premier Li Keqiang also warned about the labor market situation, which he described as ” complicated and serious “, which does not prevent the authorities from sticking to their “Covid zero” policy.

“Absolutely unacceptable threat”

Finally, in Europe, the Russian president justified his intervention in Ukraine by the aggressive attitude of Western countries towards Russia. In his opening speech at the 1945 victory celebrations, Vladimir Putin said that the Russian forces are defending the motherland from a ” absolutely unacceptable threat “. According to him, Russian troops continue the battle against Nazism in Ukraine, while emphasizing the importance of ” do everything possible so that the horror of a world war does not happen again “.

Excluding flagships from the index, we will see big releases in Ubisoft (-11.1%) after a jump of almost 33% in three weeks. In late April, Bloomberg reported that Blackstone and KKR were interested in the group. According to the Seeking Alpha site, the Guillemot family (almost 16% of the capital) would consider joining forces with a private equity firm to acquire the video game publisher.

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