European stock markets looked gray on Monday, May 9, weighed down in particular by a cocktail of headwinds for growth. The European indices again ended in a sharp decline: the CAC40 lost 2.75%, Frankfurt 2.15%, London 2.32% and Milan 2.74%. Friday, May 6, European markets had already lost around 1.5%. Compared to its peak in early January, the Parisian rating even lost 20% of its value. After several weeks of losses, the New York Stock Exchange continued to give ground: the Dow Jones lost 1.44%, the S&P 500 2.13% and the Nasdaq index of technology companies fell 2.75% around 4:10 p.m. GMT . Oil prices fell by around 5%, in the face of fears of a fall in demand for black gold with the health measures taken in China to fight against Covid-19. Around 4:05 p.m. GMT, the barrel of Brent, reference oil in Europe, for July due, lost 4.79% to 107.03 dollars, and that of American WTI for delivery in June dropped 5.10% to 104.19 dollars.
Chinese authorities extended restrictions to Beijing on Monday, where millions of residents were working from home, and Shanghai remains in lockdown. “The Chinese authorities’ stubborn pursuit of the zero Covid policy raises concerns about the crippling effect it will have on the Chinese economy in the months ahead,” said CMC Markets analyst Michael Hewson. He points out that “problems in supply chains” persist in this context and could have “disastrous consequences on growth prospects”. The effects of these health measures are already being felt: exports from China grew in April at their weakest pace in almost two years (+3.9%), with the containment of Shanghai which heavily penalizes activity economic.
