Paris closed down 1.66%, Frankfurt 1.13% and Milan 1.63%. London was closed for a public holiday. In Zurich, the SMI ended down 1.29%.
World markets sank into the red on Monday, ahead of European stock markets worried regarding the Chinese economy and a US market on the defensive ahead of the monetary policy meeting of its central bank (Fed).
European stock markets ended in the red on Monday, slightly limiting their losses following some fell more than 2% during the session. Paris closed down 1.66%, Frankfurt 1.13% and Milan 1.63%. London was closed for a public holiday. In Zurich, the SMI ended down 1.29%.
European markets have on the one hand accused the blow of “disappointing macroeconomic figures in China, which show that the country is decelerating following its policy of zero covid health restrictions”, affirms Harry Wolhandler, director “equity management” of Meeschaert Amilton AM.
Manufacturing activity in China has indeed experienced a downturn, falling in April to its lowest level since February 2020 due to the confinements of the country’s major cities. The movements were accentuated in this “day of very low volume”, due to “the absence of English investors”, adds Mr. Wolhandler.
But eyes are “mainly on the United States, with the earnings season continuing, as well as the Fed’s monetary policy meeting” on Tuesday and Wednesday, said Vincent Boy of IG France.
After a 0.25 percentage point increase in its key rates in March, the Fed will ratify this time, except surprise, an increase of half a percentage point and should also mark the start of the reduction of its balance sheet , to try to fight once morest inflation at its highest for 40 years in the United States.
“Wait-and-see” according to Harry Wolhander, Wall Street for its part evolved in a more dispersed order: at 4:30 p.m. GMT, the Nasdaq rebounded and took 0.51%, when the S&P 500 lost 0.17% and the Dow Jones plunged by 2, 77%.
After a catastrophic April for the Nasdaq (-13%, its worst fall since 2008), it is “rather logical” according to Harry Wolhandler that the American markets “won’t drop significantly once more without news at the micro level or macro in the United States today”.
Pending the Fed’s announcement, “investors are playing it safe,” says Franklin Pichard, portfolio manager Kiplink, especially in the face of “inflation (which) continues to cause concern in the world. » and a « conjuncture [qui] is degrading.”
Oil rebounds slightly
For most of the day, oil prices were “on a downward trend, once morest a backdrop of persistent concerns regarding the evolution of Chinese demand”, “in the face of the strengthening of measures once morest Covid-19 in Beijing”, indicated Christian Parisot from Aurel BGC.
But around 4:30 p.m. GMT, the barrel of Brent from the North Sea for delivery in July, which is the first day of trading as a benchmark contract, went back into the green, up very slightly from 0.21% to 107 $.31.
A barrel of US West Texas Intermediate (WTI) for June delivery followed, climbing 0.11% to 104.89 dollars.
Misguided luxury
The luxury sector, very dependent on the Chinese market, suffered heavy losses on Monday. In Paris, Kering yielded 1.73%, LVMH 2.08%, Hermès 2.82% and L’Oréal 2.52%. In Milan, Moncler lost 2.57%, Tod’s 1.26%.
In Zurich, Richemont, owner of the Cartier jewelry house, lost 3.07% and the watchmaker Swatch Group 2.32%.
European banks in poor shape
European banks were in poor shape on Monday: at the close, Credit Suisse lost 2.53%, Société Générale 2.07%, UniCredit 2.75%, Banco Santander 2.72% and BNP Paribas 1.81% .
Their American counterparts rebounded following opening in the red: at 4:20 p.m. GMT, Goldman Sachs took 0.69% and Morgan Stanley 0.63%.
German Adler sinks
The title of Adler, one of the largest German real estate groups, collapsed on the Frankfurt Stock Exchange by 29.23%, following the refusal of auditors to certify the accounts of the company in turmoil for several months .
On the side of the euro and bitcoin
At 4:25 p.m. GMT, the euro was stable at 1.0525 dollars, a historically low level, just like bitcoin, at 38.779 dollars.
