The Paris Stock Exchange remains anchored in the red this Friday afternoon, the Cac 40 giving up more than 1%, at 7,347.53 points, weighted in particular by profit taking on its heavyweight TotalEnergies (-1.6%) in the wake of the drop in oil prices, but also by producer prices in the United States, which do not show the drop hoped for by economists.
In July, they rose again by 2.4% year on year excluding food and energy, like the previous month, for a slowdown to 2.3% expected. Producer inflation rose to 0.3% over one month, against 0.1% in June and 0.2% expected. It’s a little better for the one-year expectations component of the consumer confidence index according to calculations by the University of Michigan. It stands at 3.3% over one year in preliminary data for August, after 3.4% in June.
This causes a surge in rates across the Atlantic, with an increase of 7 basis points in the yield of two-year paper, to 4.882%, and 5 basis points of that of 10 years, to 4.265%. In Paris, the values of technology and growth are displayed in the strongest declines of the day. Teleperformance lost 3.2%, STMicroelectronics 2.4% and Worldline 2.2%. Another value sensitive to rates, the property Unibail-Rodamco-Westfield loose 2.3%.
In New York, the major indices are on the downside. If the Dow Jones manages to remain almost stable, the Nasdaq Composite yields 0.65%.
IEA warns of rising oil prices
Another brake, the comments of Mary Daly, President of the Fed of San Francisco, last night, according to which it is still too early to declare victory on the front of inflation, even the last figures (those of the consumer prices of Thursday) are heading in the right direction. For this non-voting member of the monetary policy committee, the Federal Reserve still has work to do. It is premature to say whether the Fed will have to raise its rates further or maintain them at its next meeting in September. And future discussions will not, however, focus on any rate cut scenario. Yesterday were unveiled consumer prices for the month of July. Inflation fell to 4.7% in July excluding the volatile elements of energy and food, down slightly from 4.8% in June.
On the oil front, the barrel of Brent is back below the 87 dollar mark but remains not far from its January 23 peak at 89.09 dollars. The International Energy Agency said on Friday that oil demand growth next year would be weaker than previously expected, citing sluggish macroeconomic conditions, the loss of momentum in the recovery that had successor to Covid-19, and the growing use of electric vehicles. But, in the meantime, she believes OPEC+ production cuts could erode stocks through the rest of the year and push prices higher. According to the IEA, if OPEC’s current targets are maintained, oil inventories could fall by 2.2 million barrels per day in the third quarter and 1.2 million in the fourth, “which could push rising price”.
2023-08-11 14:12:39
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