Mid-session analysis AOF France/Europe – The determination of central banks scares the markets – 06/16/2022 at 12:04

(AOF) – The markets fall after the Fed and the SNB. It is finally time for awareness. Great remedies for great evils…hoping that they are not worse than the evil. Faced with the exceptional level of inflation, the central banks are showing that they are capable of “going all-in”, that is to say, throwing all their forces into the battle, and so much the worse for growth. A determination that today frightens investors in equities as in bonds. The US 10-year yield jumped 16 basis points! The CAC 40 lost 2.2% to 5,895.5 points and the Euro Stoxx 50, 2.8%.

In London, Asos fell more than 25% to 864.75 pence, penalized by a warning on its results. The party is over. The “revenge shopping” effect fizzled out. The online discount clothing retailer has revised down its 2022 forecast due to slowing demand. Faced with galloping inflation that is eating into their purchasing power, households are tightening their belts. They are no longer rushing to the pieces of one of the kings of ‘ultra fast fashion’ to focus on basic products. These cautious forecasts contrast with those of Inditex (Zara) and H&M.

Engie fell nearly 8% to 11.27 euros. Investors fear the impact of the slowdown in Russian gas supply on the activity of the energy company. The French giant indeed declared yesterday evening to note a fall in the deliveries of gas after the last actions of Russia. However, he added, his customers were “for the time being” not affected. Yesterday, Kremlin’s armed arm Gazprom announced a second two-day supply cut on the Nord Stream 1 gas pipeline to Germany, cutting flows to just 40%, Reuters reported.

After starting the session in the green, Rexel (-2.97% to 17.8 euros) took the path of decline, carried away by the wave of risk aversion that is evident today on the Paris market. . However, the distributor of electrical equipment is the bearer of good news. It has indeed raised its 2022 objectives and unveiled ambitious medium-term objectives, ahead of a day dedicated to investors.

The macroeconomic figures of the day

In the UK, the monetary policy decision is expected at 1pm.

In the United States, investors will react at 2:30 p.m. to weekly jobless claims, building permits and housing starts in May and the Philadelphia Fed manufacturing index in June.

Around noon, the euro lost 0.3% to 1.0414 dollars.

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