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Home Business AOF France/Europe closing analysis – Concern weighed on the markets

AOF France/Europe closing analysis – Concern weighed on the markets

(AOF) – The European stock market ended the week very badly, in the wake of Wall Street, due to fears around inflation. Good US employment figures added fuel to the fire, with the economy’s good health also contributing to higher inflation expectations. This could eventually result in an accelerated normalization of the Fed’s monetary policy. In the midst of a new slew of quarterly results, not all of which were encouraging, the CAC 40 fell 1.73% to 6,258.36 points. The Euro Stoxx 50 lost 1.4% to 3,644.83 points.

Adidas fell more than 3.5% on Friday, to 183.40 euros, thus ranking among the worst performers in the Dax, after announcing prospects clouded by the return of covid in China. Indeed, the various confinements imposed in recent weeks in Shanghai and Beijing have prompted the German sports equipment manufacturer to target annual growth at the bottom of the range of 11% to 13% (excluding currency effects). The analysts’ consensus anticipates +10.8%.

A little less than a month after its profit warning, Scor revealed the extent of its net loss in the first quarter: 80 million euros against a profit of 45 million in the first quarter of 2021. If the loss is higher than the consensus of 66 million euros, the action of the reinsurer escaped the decline of the day on the markets, rising 0.73% to 26.26 euros. Analysts were anticipating such a positive reaction given the stock’s recent pullback.

JCDecaux fell on the Paris stock market on Friday, landing in last place in the SBF 120 due to a fall in the stock of more than 10%, to 17.24 euros. Investors were concerned about the group’s prospects due to the confinements and the multiplication of mobility restrictions in several Chinese provinces to fight against the return of covid. These measures have led the outdoor advertising specialist to anticipate organic growth of more than 15% for the next quarter, far from the consensus expectations of +26%.

The macroeconomic figures of the day

Between the end of December 2021 and the end of March 2022 in France, salaried employment in the private sector slowed down: +0.3% after +0.6% (i.e. 66,100 net job creations after 117,900), reveals INSEE. This increase follows those of 2021 (+3.5% over the year as a whole, i.e. +677,700 jobs), which had already more than offset the drop in 2020 (−1.8% i.e. −354,000 jobs ). In total, at the end of March 2022 private salaried employment exceeded its level before the health crisis (i.e. end of 2019) by 2.0% (+389,700 jobs).

In Germany, industrial production fell in March over one month by 3.9%. Economists were expecting a decline of 1% after +0.1% in February (revised from +0.2%).

The U.S. economy added 428,000 jobs in April, a figure above the consensus of 395,000. The March figure was revised up from 431,000 to 428,000. The unemployment rate remained stable at 3.6%. whereas it was anticipated at 3.5%.

Around 5:50 p.m., the euro gained 0.59% to 1.0579 dollars.

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