Cac 40 in the red as US inflation figures loom, Market News

The Paris stock market is starting to fall again amid further declines on Wall Street and expected June inflation figures in the United States. In Germany and France, consumer price inflation was confirmed at 8.2% and 6.5% respectively in the one-year period last month, as expected. It should also be noted thatEDF requested that trading in its shares be suspended until further notice. This decision was made after the Prime Minister announced last week that the state would increase the capital of the electrician to 100%.

At 9:45 in the morning in Bedroom 40 lost 0.67% to 6,003.44 points with a business volume of 310 million euros.

On Wall Street, the S&P 500 and Nasdaq Composite fell nearly 1% on Tuesday after a volatile session, but fears of slowing growth and an aggressive monetary policy stance again prevailed. The International Monetary Fund did revise its forecast for US economic growth to 2.3% this year from the 2.9% estimated in June.

The US Department of Labor will release last month’s consumer price statistics at 2:30 p.m. They were expected to rise 8.8% year-on-year, a new 40-year high, after 8.6% in May. Some analysts, including those at UBS and Deutsche Bank, go so far as to predict a 9% rise, largely due to a surge in gasoline and used vehicle prices.

75 or 100 basis points?

Several U.S. Federal Reserve officials recently called for a 75-basis-point hike in the Fed’s interest rate in July in an attempt to curb inflation after the same hike the previous month. But a higher-than-expected figure could boost expectations for a 100 basis point hike.

A further rise in consumer prices today will undoubtedly boost Fed hawks, push the dollar higher and stocks lower.– says Opek Ozkardeskaya, an analyst at Swissquote Bank. On the other hand, a weaker-than-expected reading could revive hopes of a soft landing for the U.S. economy and lead to a welcome pause in the dollar’s rise and thus a recovery in stocks ahead of major shocks. U.S. banks do not release their quarterly results on Thursday. However, she adds that in both cases, market volatility should remain high and visibility limited, especially if the summer weakness in trading volumes is factored into the mix “.

In the foreign exchange market, the euro-dollar edged closer to parity at $1.00005 before a jump in the single currency, which is trading at $1.0012 this morning. But a drop below $1, which would be the first since 2002, is only a matter of time, which is a real concern for the European Central Bank as the price of energy and other commodities rises, thus fueling inflation.

Banks and “technicians” are fighting

In Asia, the central banks of Korea and New Zealand this morning raised their interest rates by 50 basis points to 2.25% and 2.5% respectively. However, there is good news from China: exports rose 13.2% year-on-year in the first half of the year, while imports rose 4.8%. A better-than-expected performance that could temporarily allay fears of a slowdown caused by the risk of new health care restrictions.

Technology stocks were among the day’s biggest decliners, following the Nasdaq and the ongoing inversion of the yield curve between the 2- and 10-year U.S. Treasuries. World line loses 3.4%, Capgemini 1.6% and Dassault Systemes 1%.

Financial stocks are losing ground ahead of the release of quarterly results from several major US banks. BNP ParibasAgricultural credit, Sausage General and Aksa income from 1.7% to 2.4%.

The automotive sector is also under pressure Renault (-2.6%), Stellantis (-2.4%), Faurecia (-2.3%) and Valeo (-2.4%).

Veralia on the contrary, receives 3.3%. Jefferies initiated a “buy” hedge on the stock to a target of €37.

The luxury sector will benefit from China’s good foreign trade performance. Hermes thus occupies 1.2% and LVMH 0.3%.