The Paris Stock Exchange cautioned Wednesday prior to the European Central Bank meeting on Thursday against the backdrop of high inflation and slowing economic activity.
At 10:43 am, the notable CAC 40 index increased 0.17% to 6,489.49 points. On Tuesday, the coast of Paris was lost (-0.74%) and most of the ground was restored on Whit Monday.
“The dominant concern is the potential for entry into the recession of the global economy, including Europe and the United States,” emphasizes LBPAM analyst Sebastian Paris Holbitz.
After being shocked by a pandemic and achieving strong growth, the world economy is losing momentum.
“This slowdown is highlighted by a surge in inflation and monetary tightening. In such a situation, it makes sense to be cautious in terms of risk-taking in the market,” Holbitz said.
Investors are also preparing for an exceptional European Central Bank (ECB) meeting in Amsterdam rather than Frankfurt, which marks a historic turning point after years of cheap and abundant monetary policy. Should do.
The ECB must decide to stop buying net debt that has previously supported the market. Then, in July, the cycle of key rate hikes should start, but the extent of monetary tightening remains unclear.
This depends on the ECB’s economic forecasts released Thursday, taking into account the impact of the war in Ukraine on Europe.
Traders also expect the Fed to raise key rates by 0.5 points at each of its next three meetings next July and September.
In India, the central bank raised rates by 0.5% on Wednesday for the first time in two months. This is because the Ukrainian war has caused Asia’s third-largest economy to suffer from high inflation.
Orpea and Corian are suffering
Corian Group behavior fell 9.46% to € 16.95 after 30 complaints were filed by a resident’s family before 12 prosecutors in some areas.
The title of Orpea was down 4.79% to € 24.04, but as part of an investigation into allegations of institutional abuse and economic crime held in April by the regional bureau of headquarters and a private group of Ehpad. AFP is a matched source. Since the beginning of this year, Orpea’s share has decreased by more than 72% and Corian’s share has decreased by more than 38%.
Distribution and energy down
Casino stocks fell 0.82% to € 16.97. Green Yellow, a subsidiary of the casino group dedicated to the production of solar energy, would have attracted at least five potential buyers, and the daily Rezeco on Wednesday dated the environmental services giant Veolia (-1.15% to 26). We are ready to join forces with investment funds that suggest that they will include (68 euros), “the economic newspaper specifies.
Calfool shares fell 1.59% to € 18.84, based on a corporate value of R $ 7 billion, after the distributor’s Brazilian subsidiary completed the acquisition of Grupo Big from Advent International and Wal-Mart in April 2021. I did. At the current exchange rate, the corporate value is 1.35 billion euros.
The EDF, which appointed Nicholas Makuto as director of the New Nuclear Program France, which directs the construction of the new EPR, yielded between 1.31% and 8.14 euros. Engie fell 1.16% to € 12.45.