(New York) World stock markets fell again on Friday, marked by the deterioration of economic activity in the euro zone with disappointing advanced activity indicators.
On Wall Street, the NASDAQ fell 1.01% on Friday, after its first week in the red in two months, the S&P 500 fell 0.77% on the day, posting a weekly loss for the first times for five weeks, and the Dow Jones dropped 0.65%.
European stock markets ended the week negative, as in each of the sessions, and the pan-European Eurostoxx 600 index had its worst week (-2.97%) since mid-March. On Friday, Paris lost 0.55%, London 0.54%, Frankfurt 0.99% and Milan 0.73%.
Investors were put off after the release of advanced reports on PMI economic activity in the Eurozone. Private sector growth slowed sharply in June, falling to near zero, weighed down by industry woes, according to S&P Global’s first estimate.
The index is at its lowest for five months and “all the indicators for European countries have been disappointing” according to Edward Moya, an analyst at Oanda.
“The last few days have been marked by a significant change in mood on the outlook for the global economy” which is pushing “investors to reassess the outlook for valuation” on the stock market, said Michael Hewson, analyst at CMC markets.
Faced with fears about the economy in the euro zone, investors fled the common currency: very close to the close, the euro lost 0.57% to 1.0894 dollars per euro.
Investors also favored safe havens such as the bond market, leading in Europe to one of the strongest declines in one-session yields since March.
The interest rate on the German 10-year loan was at 2.35% at 11:45 a.m. (Eastern time) against 2.49% and the French at 2.88% against 3.02% on Thursday.
In the United States, 10-year Treasury bills were at 3.73%, down from 3.79% on Thursday.
The markets also digested a week full of announcements from central banks and their representatives, starting with Jerome Powell, Chairman of the Federal Reserve (Fed), who indicated that the increases in the Fed’s key rates were not finished.
starbucks creams
On Wall Street, Starbucks skimmed 2.49% to $98.34. One of the coffee chain’s employee unions is planning a strike action next week in more than 150 stores.
Siemens Energy takes a blade
German energy company Siemens Energy revealed on Friday that the scale of wind turbine failures at its subsidiary Siemens Gamesa was far greater and more costly than expected, leading to a record plunge in its stock price.
Siemens Energy shares tumbled 37.34%, knocking about 6 billion euros off the market capitalization. Its parent company Siemens lost 2.84%, and the Danish Vesta Wind 6.63%.
GSK is recovering
British pharmaceutical giant GSK gained 4.87% after it announced a settlement in California in a dispute over heartburn drug Zantac, which patients have accused of contributing to their cancer.
In Paris, the Sanofi laboratory, which also benefited from positive legal news on the sidelines of the same case during the week, ended up 1% on Friday and achieved the best performance of the CAC 40 index over the week. .
On the side of oil and bitcoin
Oil prices continued to fall amid fears about economic activity.
A barrel of Brent from the North Sea, for delivery in August, lost 0.39% to 73.85 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery the same month, fell 0.50% to 69.16 dollars.
Around 4:50 p.m. EST, bitcoin was up 2.44% at $30,890, a year-to-date high.
The volatile cryptocurrency is now twice as expensive as its 2022 low, but half as expensive as its 2021 high.