(AOF) – European markets fell heavily, weighed down by their most cyclical segments. More and more economists are anticipating a recession due to the tightening of monetary policies intended to curb inflation. The latter emerged at its highest for 40 years in May in the United Kingdom. Investors are playing it safe pending the hearing of Jerome Powell in Congress this afternoon in Washington. Around noon, the CAC 40 lost 1.88% to 5,853 points and the EuroStoxx50, 2.05% to 3,422 points.
BASF lost nearly 5% to 43.865 euros on the Frankfurt Stock Exchange, penalized by the pessimistic outlook unveiled by its CEO. According to Reuters, Martin Bruedermueller told an industry event in Germany that his group’s business is expected to slow in the second half. Inflation will weigh on household purchasing power as competitors of the German chemicals giant soon look set to improve their supply chains affected by the coronavirus pandemic and global shortages.
In Paris, Crédit Agricole SA fell 1.46% to 9.26 euros, in line with other French banks. The Green Bank has presented a plan for 2025 called “Ambitions 2025” in line with the previous one. By this date, Crédit Agricole SA is aiming for net profit attributable to the group of more than 6 billion euros and a return on tangible equity of more than 12%. It had recorded last year a net income group share of 5.4 billion euros and a profitability of 13.1%.
Accor (-2.59% to 27.59 euros) has entered into exclusive negotiations to sell a 10.8% stake in Ennismore (lifestyle hotels) to a Qatari consortium for a total amount of 185 million euros, including 20 million euros of Sharia-compliant financing provided by Qatar First Bank LLC to the Qatari consortium’s investment vehicle. The contemplated transaction reflects an implied enterprise value to Ebitda valuation multiple of 18 times for 2023 for the combined Ennismore Group.
The macroeconomic figures of the day
In the United Kingdom, inflation in May over one year reached 9.1%, in line with expectations, after +9% in April. It stands at its highest level since March 1982. Over one month, consumer prices rose by 0.7%.
In the United States, the weekly evolution of stocks of petroleum products is expected at 4:30 p.m.
June consumer confidence for the eurozone will be released at 4 p.m.
Around 12:00 p.m., the euro lost 0.18% to 1.0516 dollars.