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Mid-session analysis AOF France / Europe – European stock markets fold again after a Black Thursday on Wall Street

(AOF) – European markets are also accusing the aftermath of the Fed meeting, while Wall Street ended yesterday in sharp decline. The Nasdaq even recorded its worst session since the end of 2020. After the reassuring tone used by Jerome Powell on Wednesday evening, investors began to doubt the ability of the central bank to curb inflation without a major rate hike, even if it means penalizing growth. In addition, the many business results have not all brought satisfaction. Thus the CAC 40 lost 1.27% to 6,287.25 points, and the Euro Stoxx 50, 1.67% to 3,634.95 points.

Adidas fell more than 6% on Friday, to 176.90 euros, thus ranking among the worst performances of 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 today escapes the market decline, rising 1.42% to 26.44 euros. Analysts were anticipating such a positive reaction given the stock’s recent pullback.

JCDecaux falls on the stock market, landing in last place in the SBF 120 due to a fall in the stock of more than 10%, to 17.14 euros. Investors are worried about the group’s prospects due to 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%).

Investors will learn at 2:30 p.m. of the US employment report in April.

Around 11:50 a.m., the euro gained 0.23% to 1.0569 dollars.

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