CAC 40: investors are worried after the collapse of Asian and American indices
After the collapse of the American and Asian indices, the Paris Bourse should open this Friday, May 6, when investors worry about the state of the global economy. Futures for the CAC 40 index fell 0.21% about forty minutes before the open. The previous day, after a good start to the session, the Paris market turned around at the end of the session, led by a low opening on Wall Street. The session ended in the red in New York, the worst session since 2020: the Dow Jones gave up 3.12% while the Nasdaq, with strong technical terms, lost almost 5% (4.99%) and the S&P 500 index 3.56%.
This session on Wall Street was marked by the publication of a decrease in industrial activity compared to the previous session and a drop of 7.5% in American yields in the first quarter, the largest since 1947. The Bank of England (BoE), which expects a 2022 recession in the United Kingdom, has raised concerns among investors about the ability of central banks to achieve soft inflation. Because inflation remains strong in several countries.
Inflation: Are we headed for disaster?
The BoE, which has raised rates for the fourth time, also thinks it could be above 10% in the UK, as repeated shutdowns in China and the war in Ukraine continue to affect stocks.
In a sign of current market volatility, bond yields rose again, with the 10-year US government yield rising above 3.10% for the first time since November 2018. On Friday, several indicators, starting with industrial production for March in Germany and the unemployment rate of April in the United States, will be watched closely.
Principles to follow
The insurer gained 2% in annual changes in the first quarter but was much lower than analysts’ expectations, which management attributed to “uncertain events related to international conflicts”.
The display giant actually surpassed its first-quarter target thanks to strong digital growth, but expects a slowdown in the year due to the lockdown affecting China’s major cities.
The sports equipment maker is also struggling with health in China, causing its profits to drop 38% in the first quarter and forcing it to revise some of its annual targets.
The oil group is found in a fight between its management and some of its shareholders around and put on the list of the General Meeting, scheduled for May 25, of the decision to ask the group to comply with the Paris climate agreement.
>> Buy and sell your investments (market, cryptocurrency, gold, etc.) at the right time thanks to Momentum, Capital’s newspaper on technical analysis. And right now, with promo code CAPITAL30J, take advantage of a free trial month.