(BFM Bourse) – Difficult weekend at the Paris Stock Exchange. The CAC 40 lost more than 1.2% on Friday evening after producer prices in the United States disappointed investors. On a weekly basis, the Parisian index saves the honor and ends in positive territory (+0.34%).
The good momentum printed on Wednesday and Thursday did not suggest such a weekend on the Paris Stock Exchange. Down 0.6% at midday, the CAC 40 accelerated its fall (-1.26%) to close below 7400 points at 7340.19 points on Friday evening.
The market did not appreciate the content of the star publication of the day. July producer prices in the United States rose 0.3% month on month in July, when the market expected a weaker increase of 0.2% and after a rise of 0.1 % in June. Over one year, the figures were also disappointing. Wholesale prices appreciated by 2.4% over one year, excluding volatile elements, while the market was hoping for a slight slowdown to 2.3% over one year.
A statistic that “did not please the markets”
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“The trajectory of producer prices has largely normalized in the United States, but the slightly larger than expected rebound in the PPI in July did not please equity markets”, reacted Alexandre Baradez, analyst at IG. on the X social network.
The bond compartment was also the scene of the markets’ disappointment. The 10-year yield of the US Treasury is tending to 4.162%, that of the German Bund of the same maturity, which is the benchmark in the zone euro, he is at 2.62%. Ditto for the 10-year rate of the assimilable bond of the French Treasury (OAT), which reached 3.15%.
The direction of producer prices supports the comments of the President of the Federal Reserve of San Francisco on the inflation figures published the day before. For her, it is still premature to declare the “victory” of the American Federal Reserve on inflation. “There’s still work to be done. And the Fed is fully committed to resolutely bringing inflation back to its 2% target,” she told Yahoo! Finance. Remember that “core” inflation, i.e. excluding food and energy prices, came out in line with market consensus at 4.7%, over one year and below 4 .8% of the month of June.
For its part, US consumer confidence fell slightly in August, to 71.2 points, according to the preliminary index from the University of Michigan. On the positive side of this statistic, consumer inflation expectations are at 3.3% at the end of the year, against 3.4% expected last month.
Over the week, the CAC 40 managed to save the furniture (+0.34%) thanks to the two sessions on Wednesday (+0.72%) and Thursday (+1.52%).
Reduced news as August 15 approaches
On the business side, business news as August 15th approaches. This day will be a public holiday but not a day off at the Paris Stock Exchange.
Coface limited its decline to 0.8% after announcing slightly lower half-year results. The credit insurer will present a new strategic plan on March 5, 2024.
Atos dropped 4.3% as S&P plans to downgrade the IT group’s rating by one notch.
In the foreign exchange market, theeuro yields 0.25% to 1.057 dollars after the publication of producer prices in the United States. As for oil prices, a barrel of Brent from the North Sea, for delivery in October, rose 0.7% to 87 dollars and West Texas Intermediate (WTI) gained 0.75% to 83.44 dollars.
Sabrina Sadgui – ©2023 BFM Bourse
2023-08-11 16:00:00
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