Cac 40: The Paris Stock Exchange closes this black week at its lowest level since the end of February 2021

(BFM Bourse) – The Parisian index fell 2.3% on Friday to close this tough week below 5,800 points, as markets are concerned about the risk of a recession induced by a fierce fight by central banks against inflation. record. the ACC 40 lost almost 5% weekly.

Throw no more! Between the renewed tensions in the Ukrainian conflict, the announcements of the US Federal Reserve and the prospect of a recession, the Paris Stock Exchange closes this tough week completely washed out to fall to its lowest closing level since February 25, 2021.

the ACC 40 Thus ends Friday’s session with a sharp fall of 2.28% to 5,783.41 points, after having registered a low in the session at 5,765.65 points shortly before 4:00 p.m. For the week as a whole, the Parisian index shed 4.8% and more than 20% compared to its peak on January 5.

On Wall Street, the atmosphere is also feverish, the Dow Jones recovered 1.4%, the Nasdaq lost 1.5% while the S&P fell 1.7% at the close of European stock markets. Therefore, the fight against inflation will increasingly come at the cost of a recession. A scenario that is far from reassuring investors…

“Most of the major central banks continue on their fantastic path to combat inflationary pressures. The race to tighten monetary policy can be described as historic in its scale and speed,” said Sebastian Paris Horvitz of La Banque Postale Asset Management.

“With Wednesday’s sharp rate hike set to continue throughout the year in the US (and around the world), then the question arises what the impact will be on the real economy,” said John Plassard, a specialist in Mirabaud investments.

Fears of an upcoming recession in the area euro materialize on the statistics. The PMI indices of the area euro, which measure private sector activity in the monetary union, have not been encouraging. The composite index, which includes manufacturing activity and services, stood at 48.2 in September, a 20-month low. As a reminder, a PMI below 50 indicates a contraction in activity, above 50 its expansion. “September PMI surveys are consistent with a slight drop in GDP in the area euro in the third quarter,” judge Capital Economics.

black gold blues

In addition, fears of a global recession are causing oil prices to fall. the WTI traded below $80 for the first time since January, while the Brent of the North Sea fell almost 5% to 86 dollars, also weighing down the prices of the two world references due to thethe strength of the dollar against the main currencies.

Oil stocks are at the forefront of this bout of weakness, Total Energies fell 5%, Vallourec lost 5.3% and CGG fell 6.7%.

As for the other values, few survivors to report except M6 who for his part was the headliner of this session. Up-and-coming former small chain gained 8.1%, still benefiting from renewed speculative interest while its owner RTL Group has decided to put up for sale its 48% stake in the French audiovisual group.

Airbus showed resistance (-0.4%) after the management of the aeronautical group pledged to improve shareholder returns, citing possible share buybacks.

Automotive suppliers skated throughout the session. Faurecia lost 11.5%, Valeo fell 10.25% while akwellwhich posted sharply lower half-year results, ended down 4%.

On the small- and mid-cap side, the business transformation consulting group micropole plummeted more than 14%, its half-year results having been eroded by the costs required to attract talent.

In the foreign exchange market, theeuro It fell 1.20% against the dollar to $0.9717, a 20-year low, with the dollar benefiting from its safe-haven status. The pound fell below the symbolic threshold of $1.10 on Friday after budget announcements seen as costly for public finances.

Sabrina Sadgui – ©2022 BFM Bourse

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