Tuesday, May 17, 2022
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Feverish European stock markets

(AOF) – After a trying session, European stock markets closed in negative territory on Thursday. However, they rallied sharply in the afternoon to end far from their lowest level for the day. At the sound of the bell, the CAC 40 fell 1.01% to 6,206.26 points and the EuroStoxx 50 dropped 0.76% to 3,620 points. On Wall Street, the trend is less uniform: if the Dow Jones yields 0.40%, the Nasdaq Composite fell 0.68% at the end of the afternoon.

The places of the Old Continent were penalized by a wave of concerns fed by the continuation of the war in Ukraine, the “Zero Covid” policy led by China, the world tensions on supplies, and the persistent inflation at a high level.

In this regard, the publication of US producer prices for April was a new opportunity to fuel the debate. They posted an increase of 11% on an annual basis. This is less than the 11.5% in March, but it is more than the consensus was aiming for (+10.7%).

In such a context, investors are worried about the risk that the Fed will accelerate the pace of its monetary tightening, at the risk of leading the American economy into crisis.

All this while the machine is already seizing up. illustration of the day: there were more jobless claims than expected last week (203,000 while the consensus was counting on a decline to 195,000).

As for bond yields, they took the downward path today: the American 10-year lost 6 basis points, while its German equivalent fell by 12 basis points, at the end of the afternoon.

In terms of values, STMicroelectronics (+3.97%) was supported by the ambitious objectives unveiled for 2025-2027 and Alstom (+4.85%) recovered some of its losses from the day before.

On the other hand, the Renault group (-2.27%) was penalized by the disappointing annual outlook announced by its partner Nissan. As for Veolia (-6.04%), the confirmation of its annual targets was not enough to allow it to escape the decline.

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