Cac 40 fell more than 1%, the ECB will raise its rates in July, and then may accelerate, market news

The Paris Stock Exchange fell after the Board of Governors of the European Central Bank confirmed the suspension of the purchase of assets on July 1 by APP. The ECB also plans to raise interest rates by a quarter of a point at its meeting on July 21, the first in 11 years. But first she pointed out that if medium-term inflation forecasts “Confirm or worsen, more reinforcement will be appropriate in September “In addition, a gradual but steady rate of increase in interest rates will be appropriate,” she added.

Asked by Reuters whether all ECB interest rates had suffered from future tightening of monetary policy, Christine Lagarde said in English that they were “key ECB interest rates”, emphasizing them. She also confirmed that the ECB is about to emerge from an era of negative interest rates. In the foreign exchange market, the euro lost 0.3% to $ 1.0684.

about 15:45, Art Bedroom 40 lost 1.46% to 6354.39 points with a business volume of 1.49 billion euros. In New York, Dow Jones yield 0.34% and Nasdaq Composite 0.73%.

Inflation forecasts have been revised upwards

It was expected that the announcement of the cessation of asset purchases did not affect the markets. Nonetheless, “The most important element of a press release is what it doesn’t have, says Andrew Kenningham of Capital Economics. ” There is absolutely nothing new in the possible “Tool against fragmentation” aimed at avoiding excessive expansion of yield spreads in peripheral countries “, – he notes. Although consumer prices in the eurozone in May reached a record 8.1% for the year, the ECB expects inflation at 6.8% this year against 5.1% in March, and then fall to 3.5% in 2023 (revised from 2, 1%) and up to 2.1% in 2024 (compared to 1.9% earlier). Regarding the GDP growth forecast, it was reduced from 3.7% to 2.8% this year, from 2.8% to 2.1% in 2023 and increased from 1.6% to 2.1% in 2024 .

High price for the world economy

While investors are trying to assess the extent and pace of future strengthening of the central bank’s monetary policy, they are also waiting for the May inflation rate in the United States, which will be released tomorrow. According to the consensus formed by Bloomberg, they were to stabilize at 8.3% within one year. In the bond market, the yield on 10-year US bonds fell by 3 basis points to 3.0520%.

The OECD warned yesterday about the risks to the global economy that are expected pay a high price for the war in Ukraine in the form of lower growth, higher inflation and potentially long-term damage to supply chains.

Two options for EDF nationalization are being explored

The largest increase in SRD, EDF increased by 4.7%. The nationalization of electricians is one of the new government’s priority projects after the parliamentary elections. Echoes. The state, which owns 84% ​​of the group’s capital, is exploring two options: either through a simplified public offer for minority shareholders, or through a nationalization bill, the diary said.

Sodexo is stable. HSBC has raised its recommendation on shares of the catering group from “hold” to “buy”. The same broker lowered the rating Elior (-3.7%) from “buy” to “hold” and reduced the target price from 7.50 to 3 euros.

get links fell by 2.5%, despite a tripling of passenger traffic in May. RBC holds its “bad” view of the stock, believing that the volatile aspect of increasing market share is not an argument in favor of rising results or its current valuation, which is “significantly” overestimated by speculation about mergers and acquisitions.