Cac 40 fell 1% after the Nasdaq collapse and China’s bad indicators, market news

The Paris Stock Exchange fell in this first session of May, which was traditionally bearish. Inflation is skyrocketing and China’s growth is hampered by health restrictions in several major cities across the country. Beyond the continuation of the quarterly closing season, the next few days will be suspended by the US Federal Reserve and the Bank of England’s monetary decisions and the April employment report in the United States.

9:45 am, Bedroom 40 With a trading volume of 280 million euros, it decreased by 1.24% to 6,452.90 points.

The Asian market fell this morning due to the continued deterioration of China’s manufacturing activity in April. The official PMI index fell 2.1 points to 47.4, below the critical threshold of 50 points, which separates expansion and contraction for the second straight month. The Caixin manufacturing PMI also continued to shrink from 48.1 in March to 46 points. This session will also be fueled by the final S & P Global and ISM Activity Indexes in Europe and the United States in April.

Focus on Fed interest rates and balance sheets

Beijing will continue to close gymnasiums and theaters during the three holidays of Labor Day celebrations, where markets will remain closed from this Monday if the number of pollution shows signs of slowing in China. .. Financial centers remain closed in Hong Kong and London today.

On Friday, Wall Street plunged after the worst week since the end of January, ending one of the worst months since the 2020 pandemic. The Federal Reserve’s Friday decision should bring an increase of 50 basis points in the Federal Reserve, the highest level since 2000. The Federal Reserve can also announce its intent in terms of reducing the amount of balance sheets. The more aggressive tone adopted by some central bank officials suggests other major gestures to stop the inflation spiral. According to CME Group’s FedWatch tool, the market expects the federal funds rate to return to over 3% by the end of the year.

The European Central Bank can also improve. Deputy Governor Luis de Guindos has actually shown that the ECB may decide to suspend asset purchases in July prior to future rate hikes. This depends on the central bank’s new economic forecasts released in June.

Techniques and luxury under pressure

Tightening monetary policy raises concerns about a recession, as price pressures are fueled by high credit costs and the surge in raw materials associated with the war, especially in Ukraine. Those concerned that the situation could worsen as the European Union tries to agree to introduce gradual restrictions on Russia’s oil imports this week, which could lead to a complete embargo towards the end of the year. There is also. Cite sources familiar with the discussion.

Automakers are down after a 22.6% drop in new car registrations in France last month. Renault When Stellantis Yields from 1.4% to too Forcia When Valeo Almost 2% down

technology STMicroelectronics (-2.3%) and World line (-1%) Following a fall of more than 4% on Nasdaq on Friday.

Among other growth stocks Kering Lost 2.3%, Hermes 2.4% and LVMH 1.3%.

casino 2.3% Hippoglossoides. Citi has lowered the target price for distributor titles from € 27 to € 17.

vice versa, intersection It increased by 1.7%. The Canadian Alimentation Couche Tard and the British EG Group are discussing the merger of several assets, including BP gas stations, and several convenience stores, Dow Jones reports citing sources familiar with the matter.

Airbus Qantas lost 0.7% despite announcing a contract with a European aircraft manufacturer to renew 12 A350-1000s and 40 other aircraft that can operate direct flights between Sydney and London. Did.