Market: Slight restoration after the air bag of the previous couple of days

(CercleFinance.com) – After the turmoil of the last few days, European stocks are recovering this morning, with Frankfurt up 1.1% ahead of London (+1%) and Paris (+0.8%), a return to calm favored by the rather tenuous economic agenda that is emerging in this last session of the week.

However, with the proliferation of monetary tightening measures, which threaten to plunge the planet into recession, investors are struggling to regain a taste for risk.

Market participants are indeed beginning to realize that the acceleration of the monetary tightening cycle could have an impact on growth, first in the US and then in the rest of the world.

While no asset class has been spared by the recent correction in financial markets, the main warning signs undeniably come from the bond market.

The significant easing taking place this morning in the Treasuries market should, however, offer a semblance of calm to equities, even if concerns are far from completely allayed.

Yields on US Treasuries are all starting to fall again, with the ten-year return to around 3.30% after hitting 3.45% yesterday.

The two years and five years are also falling from their peaks the day before, confirming that now is the time to relax in the bond compartment.

The macroeconomic agenda looks thin today, with the release of final figures for inflation in the eurozone, then industrial production and the Conference Board’s main indicators in the United States.
Investors were, however, able to take note of inflation in the euro zone, which stood at 8.1% in May over a year, according to data released Friday by Eurostat, thus confirming its first estimate made at the end of the year. from last month.

This figure, which marks an acceleration after a 7.4% gain in April, is more than four times higher than the 2% target historically set by the European Central Bank (ECB).

The strongest come from energy (+3.9 percentage points), followed by food, alcohol and tobacco (+1.6 points), services (+1.5 points) and industrial goods (+1.1 points).

In European Stocks news, Sandoz announced today that the European Medicines Agency (EMA) has accepted its application for a 100 mg/mL high-strength formulation (HCF) of its biosimilar (adalimumab) for regulatory review.

Equinor announces that it has launched a study on the Troll and Oseberg fields, with its partners Petoro, TotalEnergies, Shell and ConocoPhillips, to study the possibility of building a floating offshore wind farm approximately 65 kilometers west of Bergen, Norway.

Finally, Oddo confirms its ‘outperformance’ rating on Ferrari shares, with an unchanged price target of 230 euros, after the prancing horse made a commitment to increase shareholder value return (increase in 30% to 35% payout and 2 MdE’s new share buyback program, >6% market capitalization and almost double the previous plan), during its CMD (Investor Day).

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