The flagship CAC 40 index was down 57.50 points to 6,310.80 points at 10:10 a.m., after a decline of 0.43% the day before.
On Thursday, Wall Street recorded the third largest loss of points in its history, after the two tight sessions of March 12 and 16, 2020, at the start of the coronavirus pandemic.
The Nasdaq, an index with a strong technological tone, fell 4.99%, while the Dow Jones dropped 3.12% and the broader S&P 500 index 3.56%.
After enthused on Wednesday by comments by US central bank (Federal Reserve, Fed) Chairman Jerome Powell, who ruled out an even sharper tightening of monetary policy by the Fed and a rate hike of 0 .75 percentage points at its next meeting, the market is now worried about the economic outlook which is darkening globally.
“Investors increasingly doubt the ability of central banks to fight inflation without negatively impacting growth,” summarizes John Plassard, investment specialist at Mirabaud.
The Bank of England (Bank of England, BoE) now anticipates a year 2023 of recession in the United Kingdom.
Especially since inflation remains high in the main economies of the planet, raising fears of the entry into a price-wage loop which is beginning to materialize in both the United States and the United Kingdom, according to the latest data published. , with the risk of a long-term rise in prices.
Luxury sees red
The main values of the luxury sector were down at the start of the session in Paris and London, in particular under the effect of the economic outlook in the United Kingdom and the United States as well as regular confinements in the major Chinese cities.
In Paris, Hermes (-2.23%), Kering (-1.65%) and LVMH (-1.18%) were among the main values down at 9:20 a.m., dragging the entire CAC 40 in their wake.
Axa disappoints
The action of the insurer Axa was down 1.40% to 22.84 euros in Paris, after the publication of its quarterly turnover, up but below analysts' expectations, a difference that management explained by the "uncertain context linked to geopolitical tensions".
© 2022 AFP