Cac 40 includes reverse gear, Fed tuned to fight inflation, market news

The Fed is ” firmly defined to combat inflation. This was stated by the head of the US Federal Reserve Jerome Powell during a six-month hearing before the Senate Banking Committee on Wednesday. Faced with rising prices, the monetary authority said rates would continue to rise, depending on future economic indicators, until convincing evidence shows that inflation is slowing down. At the last three meetings, the Fed has already raised interest rates Fed funds 150 basis points cumulatively to bring them in the range of 1.50% to 1.75%. ” We have both the tools we need and the determination to restore price stability on behalf of American families and companies. said Jerome Powell, adding that the rise in the value of money may lead to a recession. this ” it will be very difficult achieve a soft landing for the economy. Currently, economic conditions are generally favorable, a solid labor market and still high demand, he added.

Reducing oil prices

These words are not a surprise. And do not shed light on the scale of future rate increases. In the stock market, operators, already unwilling to take risks, kept away from stock markets, even if the fall Bedroom 40 in the afternoon thanks to Wall Street. At the time of closing, the Paris index lost 0.81% to 5916.63 points, canceling growth the day before. The business volume is 3.4 billion euros. across the Atlantic, p Dow Jones was stable at the end of the European session, while Nasdaq Composite an increase of 0.9%.

Oil prices have fallen as a sign that operators fear a slowdown in the economy. Barrel with Brent North Sea fell 4.1% to $ 109.7, and the American standard WTI lost 4.5%, to 104.7 points. Their decline was underscored by the US president’s decision to ask Congress to suspend a federal tax of 18 cents per gallon (3.78 liters) on diesel and gasoline for three months to relieve consumers. He is also preparing to call on 50 states to temporarily suspend their own taxes on petroleum products. In Paris, CGG, Vallourec and TotalEnergies fell between 2.88% and 7.41%.

ArcelorMittal is double loaded with JPMorgan and Umicore

Among other values, ArcelorMittaI fell 9.56% after JPMorgan downgraded its stock rating from “overweight” to “neutral”. What is worse, a Belgian specialist in the processing of non-ferrous metals Umicore a drop of 8.02% in Brussels after the announcement of an investment plan of 5 billion euros by 2026 “, much higher than Jeffries’ forecasts, which will affect the accounts in the coming years.

Also abused, Rexel fell 5.41% after a Mediapart article alleging suspicion of tax evasion in Switzerland and illegal pricing. Schneider-Electric (-1.5%) and Perfectly (-1.5%) are also worried.

Derishbur fell by 5.66%. Oddo BHF lowered its recommendation for the business and environmental services group from “overweight” to “neutral” and lowered the target price from € 14.50 to € 9.50. Conversely, Barclays has moved from “underweight” to “online weighing” as an operator. Orange (+ 1.65%).