The former Paris Stock Exchange building
PARIS (Reuters) – Major European stocks opened lower on Friday amid risk aversion tied to a near-synchronized rate hike this week by several of the world’s top central banks.
In Paris, the CAC 40 lost 0.31% to 5,899.96 around 07:25 GMT. In London, the FTSE 100 fell 0.07% and in Frankfurt, the Dax fell 0.39%.
The EuroStoxx 50 index fell 0.46%, the FTSEurofirst 300 0.17% and the Stoxx 600 0.31%.
For the week as a whole, the Parisian CAC 40 is now down 2.77% and the pan-European Stoxx 600 index is down 2.26%.
In Asia, the MSCI index hit a low since mid-2020 on Friday and is down 12% since the beginning of the month.
The United States, the United Kingdom, Sweden, Switzerland and Norway, among others, this week announced interest rate hikes ranging from 50 basis points to 100 basis points to curb high inflation that threatens to take hold.
But at the same time the signs of a deterioration of the economic situation, or even of a recession, are growing in the world with multiple warnings from the main institutions and companies.
Monthly PMIs for manufacturing and services activity in Europe are due out this Friday and the Reuters consensus sees a further contraction in the euro zone composite PMI to 49.0 in September, after 49.6 the previous month.
In the Stoxx 600, defensive sectors such as health care (+0.58%) are up, while conversely energy (-1.66%) and banks (-1.08%) are victims of profit taking.
In securities, Credit Suisse lost 6.71%, after Reuters reported that the group had contacted some of its shareholders about a possible new capital increase.
M6 takes 10.26% while, according to sources, its shareholder RTL Group expects non-binding purchase offers on Friday for its 48.3% stake in the channel after the failure of the latter’s merger project with TF1 (-0.62%).
In the bond market, the ten-year German Bund yield, a benchmark for the entire euro zone, crossed the 2% mark for the first time since 2013 on Friday, at 2.011%, before falling to 1.935% around 07: 30 GMT.
(Written by Claude Chendjou, edited by Kate Entringer)