The flagship index of the Paris Stock Exchange continues to rebound from the previous day, but failed to rise above the threshold of 6,000 points left last Thursday. Investors returned to risky assets after the Cac 40 fell nearly 10% in three weeks, but analysts are calling for caution, with many insisting that markets have not fully appreciated the prospect of a recession. According to them, the recent rebound is just ” bear market rally “, while the Cac 40 moved into a bear market on Thursday evening after dropping 20% from its Jan. 5 peak.
Shortly after 4:00 pm Bedroom 40 added 0.82% to 5,968.77 points after a high of 6,032.24 (+1.89%) on a business volume of 1.47 billion euros. The three major New York indexes bounce back between 1.7% and 3% after the June holiday weekend. in S&P500 fell 5.8% last week, the biggest weekly drop since March 2020, in response to a 75 basis point Fed rate hike, the biggest since 1994.
Heading for a recession in 2023?
Analysts at Goldman Sachs now estimate the likelihood of a recession in the US during 2023 at 30% versus 15% earlier amid record inflation and a weakening economic environment as a result of Russia’s invasion of Ukraine. Berenberg’s strategists, for their part, keep the perspective temporary recession in the US, the euro area and the UK in 2023. “Lack of conviction in ‘victory over inflation‘, the positive outcome of the conflict between Russia and Ukraine and the visibility of future risks associated with Covid-19, it is difficult to take directional risk on equities without hedging “, they write.
Christine Lagarde reminded on Monday that the European Central Bank plans to raise key interest rates in July and again in September, and warned of the risks of a disorderly correction in European financial and real estate markets. She also defended a project to create a tool designed to limit the risk of fragmentation in the eurozone.
St. Louis Federal Reserve Chairman James Bullard warned that inflation expectations ” could spiral out of control without credible Fed action The market is also looking forward to Jerome Powell’s monetary policy speech before both houses of Congress on Wednesday and Thursday.
Air Liquide relies on renewable energy
liquid air increased by 2.7%. The industrial gases giant has signed a long-term renewable energy purchase agreement with Vattenfall in the Netherlands for approximately 115 MW of offshore wind capacity under construction. An agreement that echoes the group’s strategy to bet on hydrogen to decarbonize the economy.
Eramet occupies 7.1%. The mining group announced it has signed a memorandum of understanding to sell its high-performance alloys subsidiary Aubert & Duval to a consortium of Airbus, Safran and Tikehau Ace Capital, in a €95 million venture.
Soytek increases by 3.5%. The Strategic Participation Fund (FSP) announced that it has entered into the capital of a manufacturer of components for the electronics industry, acquiring a stake of around 150 million euros.
Finally, Valneva another 16.3%. Its managing director, Frank Grimaud, told BFM Business that its Lyme disease vaccine could be a “blockbuster” with sales of over 1 billion euros. Yesterday the group announced the entry of Pfizer into its capital up to 8.1% at a price of 9.49 euros per share.