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The Cac 40 falls by 1.7%, Snap plunges by 40% on Wall Street and Abercrombie by almost 30%

The Cac 40 falls by 1.7%, Snap plunges by 40% on Wall Street and Abercrombie by almost 30%
Written by madishthestylebar

The opening of Wall Street was of no help to the Paris Stock Exchange, on the contrary. the Bedroom 40, which had gained just over 1% yesterday, lost everything today, and even more, falling 1.66% to 6,253.14 points. Whether in Europe or the United States, stock market rebounds are fizzling out on the stock market these days.

The trust is not there. “The market has repeatedly tried to bounce back over the past few weeks, but that momentum has consistently failed, in the session or the next day.recalls Ross Mayfield, an analyst at Baird. The bar is now higher to return to a sustained increase in the indices given all the current headwinds,” such as the fear of a recession in the United States, supply chain problems, soaring energy prices and inflation at a time when central banks, precisely because of the rising prices, can no longer inject liquidity and must instead tighten monetary policy, make money more expensive by raising interest rates, to calm demand.

The S&P 500 is down 2% today and the Nasdaq Composite of technology stocks is down more than 3%. Snap (-40%) announced that its revenue and profit targets would not be met for this second quarter due, in particular, to the complicated macroeconomic context which does not encourage advertisers to spend on advertising. Following this profit warning of Snap, the actions of other social networks also suffer the blow. Meta (Facebook) notably lost 9%. Abercrombie & Fitch (-29%) also warned about its financial performance. On the occasion of the publication of its accounts for the first quarter, during which it emerged stronger than expected, the American ready-to-wear company revised downwards its turnover target for 2022, now expected only a tiny bit better than last year.

Activity slows in Europe

No headline data on inflation on Tuesday, but figures presented this morning in Europe shed some light on the evolution of activity in industry and services, according to surveys of purchasing managers . According to preliminary data from May, growth has thus slowed in the euro zone, with a PMI index falling from 55.8 to 54.9 points in the space of a month, below the 55.3 points expected by the consensus. A slowdown that weighs just as much on the manufacturing component (54.4 points, against 55.5 in April, a lowest since November 2020) as on services (56.3 against 57.7).

“The many supply difficulties and the decline in demand for manufactured goods, linked to strong price pressures, have hampered the growth of the sector. The region’s economy, however, continues to be buoyed by the thaw in demand for services accumulated before the gradual lifting of anti-Covid restrictions,” explains Chris Williamson, at S&P Global.

Air France-KLM launches a capital increase

On the Cac 40, only a few companies closed higher today, mainly defensive stocks, such as Eurofins Scientific Where Orange.

The CFM subsidiary owned by Saffron (-4.2%) and General Electric would face delays in the production of its aircraft engines, reports Reuters.

The advertiser Publicis plunged more than 7%.

Apart from the Cac 40, Air France-KLM (-20.6%) launched a capital increase of 2.26 billion euros via the issue of shares at a unit price of 1.17 euros with preferential subscription rights maintained. The carrier is holding its general meeting of shareholders this afternoon.

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