The surge of more than 2% of the Paris Stock Exchange on Wednesday was very ephemeral. The Cac 40 fell sharply again on Thursday, rising 2.29% early in the morning to 6,125.60 points after a disappointing session in New York, where the Dow Jones lost 1.02% and the Nasdaq Composite more than 3%. .
Consumer prices presented yesterday confused investors. At 8.3%, inflation for the year was expected to be below 8.5% in March, the peak of 40 years, but above 8.1%, as expected by consensus. Enough to prove both optimists – but perhaps even more pessimistic – given the evolution of Wall Street last night – about the evolution of prices in the country …
“Crisis of the cost of living”
For Allianz’s chief economic adviser, Mohamed El-Erian, the 6.2% core inflation in April means that there are many factors that are currently influencing price formation. ” It is only a matter of time before we talk about the crisis of the cost of living. It is not just about the war in Ukraine, but about the process of large-scale inflation, in the management of which the Fed lagged behind.. »The delay, which he may have to compensate for by a more aggressive rate hike than by a mere 50 basis points increase in his Fed funds at future FOMC meetings.
On the other hand, Veronica Riches-Flores, an economist at Riches-Flores Research, “ this report undoubtedly increases the likelihood that the peak of inflation in the United States is behind us. (…) She notes 18.5% increase in air ticket prices in one month is certainly the largest increase in the index, without which the monthly growth of the base rate would be 0.4%, instead of 0.6%, which markets did not expect a possible easing of interest rate tensions ( …) Rising prices for leisure goods or services, for example, about twice less than two or three months ago. Clothing prices fell by 0.8%. Rental increases, which are particularly feared after being seen in the real estate market, are not accelerating in a showy way “.
This afternoon, at 14:30, operators will monitor producer prices. It is also expected to decrease slightly, which is recognized as 10.7% for the year, but less than the increase to 11.2% in March. ” The PPI index shows signs of leveling over several months, just above 10% for the year. Recent price stabilization may allow for a slight setback “, Oddo BHF announced earlier this week. During the month, it is expected to grow by 0.5% against 1.4% in March and by 0.6% in the “main” (excluding food and energy) against 1% in March.
Veolia “ahead” in the first quarter
From the business side, Bug (-1.2%) released accounts of 8.2 billion at the end of March, an increase of almost 6% with a loss of operating profit of 77 million, stable for the year but less than analysts had feared. Annual forecasts are maintained.
Veolia environment (-1.7%) benefited from Suez’s integration, but at the same time showed organic growth of almost 8% in the first quarter. Environmental Services Group Reaffirms Its Goals ” solid organic growth during the year and from 4% to 6% of its gross operating surplus, the ambitions for which he said ” in advance in the first trimester.
As part of Investor’s Day, STMicroelectronics (+ 0.2%) indicated that in 2025-2027 it plans to have a turnover of more than $ 20 billion with a gross margin of about 50%.
Excluding the flagship index, Ubisoft announced that it wants to return to growth in its turnover in 2022-2023 after recording a decline in revenue (-5%) and operating profit (-13.0%) during the fiscal year ended March. But it will take a little longer to recover. The stock lost just over 3%.