Published on : 24/05/2022 – 18:46Modified : 24/05/2022 – 18:44
Paris (AFP) – The Paris Stock Exchange fell sharply by 1.66% on Tuesday, still grappling with fears regarding global growth, reinforced following a warning from the social network Snapchat on its results and economic indicators worse than expected.
The star CAC 40 index lost 105.60 points to 6,253.14 points. The day before, it had risen by 1.17%.
The markets have been in a downward trend since the beginning of the year, in the face of the many factors weighing on economic growth. We can cite, pell-mell, inflation, the war in Ukraine, the confinements in China, the rise in central bank interest rates or the soaring prices of raw materials.
Added to this list on Tuesday were a profit warning from the American group Snap, parent company of the social network Snapchat, and activity indicators “below expectations”, according to Frédéric Rozier, portfolio manager at Mirabaud France.
Snap fell regarding 40% on Wall Street following warning that “the macroeconomic environment has deteriorated faster and more sharply than expected” compared to forecasts at the end of April.
“In addition to social networks”, such as Meta (-8.95%) or Twitter (-4.37%) which are falling in New York, “it’s the entire market which is suffering”, notes Frédéric Rozier.
In France, the giant Publicis posted the worst fall in the CAC 40, with a loss of 7.42% to 50.40 euros. The company had recently announced partnerships with social networks.
More generally, “the drop in Snap caused a lot of volatility” in the markets, which quickly made a bridge between this warning and the global economy, notes Frédéric Rozier.
“If companies are reducing their spending on communication and , it is because they are defensive and protecting themselves from a possible economic slowdown,” he explains.
Private sector growth in France slowed in May while remaining at a high level thanks to the dynamism of services, according to a provisional index published Tuesday by S&P Global. And in the euro zone, it has slowed down slightly.
The business climate in France remained stable in May, with an improvement in services and retail trade offsetting a deterioration in industry, construction and wholesale trade, according to INSEE.
Air France unscrews
The Air France-KLM airline group announced on Tuesday the launch of a new capital increase of 2.26 billion euros, thus hoping to put an end to the Covid-19 crisis which had devastating effects on its activity and its finance.
The French and Dutch States wish to take part in this operation and keep the same level of capital, while the two other main current shareholders, the Chinese companies China Eastern and the American company Delta Air Lines, will see their participation reduced in favor of a new entrant. , the French shipowner CMA CGM which will invest up to 400 million euros, the company said in a press release.
The action plunged 20.63% to 3.45 euros in the last trade just before the close.
Since then, the course has been suspended and the final closing price was still not available almost an hour following the market closed.
This fall led Safran (-4.20% to 92.09 euros) and Airbus (-4.14% to 102.74 euros).
© 2022 AFP
