The Paris Stock Exchange closes this session on Wednesday. in Bedroom 40 today fell by 0.8% to 6448.63 points. On Wall Street, the Dow Jones and S&P 500 fell about 0.2%.
New inflation in the US in May will be published on Friday and, of course, worries everyone, because the topic is so sensitive that rising consumer prices and producer prices are chasing household consumption and business profitability. The fact that Janet Ellen, former president of the US Federal Reserve and Secretary of the Treasury, was clearly alarmed yesterday before the Senate Finance Committee. Among several selected quotes: “Powell and I could have used a better term than the transitional”, “Expect inflation to remain high” or “There is no doubt that we have huge inflationary pressures”.
It should be noted that consumer prices are rising to 40-year highs. At 8.3% in one year in April, inflation certainly fell slightly in the United States from 8.5% in March, but not as much as the consensus had hoped (8.1%). This Friday, analysts expect stabilization at 8.3% in one year in May, despite an increase of 0.5% in one month. Excluding food and energy, ie excluding volatile elements, it is expected to decline to 5.9% in one year after 6.2% in April. In this context, the yield on US bonds remains high, as the yield on the remaining 10-year US bonds remains above the 3% threshold on Wednesday.
The OECD underestimates its forecasts
In anticipation of this key event of the week, this morning the operators were able to get acquainted in detail with the new OECD forecasts. Not surprisingly, like the World Bank yesterday, the Organization for Economic Co-operation and Development has changed them. Global gross domestic product (GDP) is now projected to grow by 3% this year compared to 4.5% in December, then 2.8% in 2023, compared to 3.2% earlier. Inflation is expected to peak at 8.5%, then fall to 6% in 2023 from 5% and return to 3% next year.
Also on the eve of inflation in the US, operators are closely following the decision of the European Central Bank on monetary policy, and especially the press conference of its President Christine Lagarde, which should prepare the ground for the first rate hike. Directors in the eurozone are expected this July. “The only real question before this week’s meeting is not whether the Board of Governors will raise interest rates in July, but to what extent.sums up the research firm Ebury, some members seem to be in favor of more aggressive measures [que 25 points de base], in particular University and Holtzman. Markets will want to know whether this view is shared by a small number of board members or shared by many. »
A strong blow for Corian
Among several significant changes in the day, we note an increase of 3.8%. Renaultthe top of the Cac 40, as the automaker began buying back its own shares under a program that began today and could run until June 14.
Exane BNP Paribas noted saffron (+ 0.39%) on the “higher”, against the “neutral” before, with a target price of 134 euros.
TotalEnergies (+ 1.45%) benefited from further increases in oil prices, Brent traded at almost $ 122 per barrel (+ 55% since the beginning of the year). Tanker shares on the stock market are the highest in the last four years.
It is outside the flagship index that we find the biggest drops in a day, for example Corian, which fell by 9.5%. According to Le Parisien, several families have filed 30 complaints about nursing homes run by a private group, including for unintentional homicides and threats to the lives of others.