continues its bearish trajectory of the previous day

(CercleFinance.com) – The Paris Stock Exchange confirms its decline: after losing 1.2% the day before, the Paris index lost between 1.5% and 2% this morning, about 6245 points.

Investors are still looking for the right position in the face of rising Federal Reserve rates and the problem of global growth due to recent blockades in China.

This renewed volatility in the markets has taken many investors by surprise, forcing them to admit that the low volatility regime that has prevailed in recent years is now over.

The rise in the VIX, known as the “fear index”, is a good illustration of the prevailing nervousness: the index jumped more than 18% yesterday to return above the 30-point threshold. We will remind, say that the market is quiet below 20 and nervous above 30.

This return to volatility encourages market participants to reconsider their asset allocation strategies without even knowing where to go at the moment.

“Will high inflation or the central bank’s efforts to contain it are about to cause a recession?” Asks Joseph W. Amato, Neuberger Berman’s director of equity investment.

“Can governors ensure a soft landing?” – the manager continues. “And have stock markets fully assessed these risks?” He asks.

In the bond market, the yield on 10-year treasury bonds is also very volatile, falling to about 2.88% this morning after days of highs and lows last week.

Aurel estimated that less aggressive speeches by the Fed, less “hawk” investors simply did not listen. In addition, “the ECB is concerned about the impact of the deteriorating European economy and market volatility on the balance sheets of European commercial banks,” the investment company said.

Now, deprived or almost of results, investors will have to use a compass of indicators to navigate the markets looking for direction.

This Thursday, the focus will be on the publication of several US activity indicators, including the Philadelphia Fed Index and the leading Conference Board indicator.

On the agenda are also still in the United States, registration for unemployment benefits and the sale of old homes.

If these statistics turn out to be positive, investors may be a little more optimistic and consider a runway for a “soft” landing for the economy.

This scenario could allow stock market indices to move forward, knowing that the sharp decline they have recently recorded makes them quite attractive today.

In the news, French companies EDF announces that it is adjusting its estimate of nuclear production for 2022 to 280-300 TWh against 295-315 TWh earlier, while several reactors have closed due to the phenomenon of stress corrosion affecting parts of the pipes nuclear reactor.

Societe Generale announces the completion of the sale of Rosbank and its insurance subsidiaries in Russia to Interros Capital, an agreement announced on April 11, which will record a net loss in the income statement of approximately 3.2 billion euros.

Finally, Eurazeo reports an increase in its assets under management of 41.5% in 12 months to 32.2 billion euros, while quarterly revenue increased by 31% (ptcc) compared to the same period twelve months earlier.

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