Cac 40 returns to the red before the test of inflation and growth, market news

After a surge the day before, the Paris Stock Exchange again marks the time of this Wednesday in the market, which remains unstable due to constant volatility. This is exacerbated by concerns about the prospects for the world economy. Investors tend to overreact to the slightest good news. But global sentiment remains pessimistic amid galloping inflation and tightening monetary policies of leading central banks.

At 9:45 Bedroom 40 lost 0.61% to 6,049.08 points in the wireless business volume of 310 million euros.

In New York, the S&P 500 fell 2% on Tuesday and the Nasdaq Composite almost 3%, while Asian markets went this morning, as did China’s CSI 300, which closed 1.5%. Although the quarantine period for travelers entering the country has been halved, some note that the actual resumption of activity remains dependent on the current Covid zero policy.

Levels that are rare outside of a recession

The days are repetitive and similar to economic indicators. This time, it is the business climate of the federal states of Richmond and Dallas, as well as the Conference Board’s consumer confidence indicators, that change in June and fall to levels that are rarely seen outside of a recession. says Veronica Riches-Flores from the Riches Flores study.

Fed officials are trying to reduce the risk of a recession, although Jerome Powell said it remains ” possibility “. New York Fed President John Williams and his colleague Mary Daly of San Francisco have recognized the need to reduce inflation, insisting that a soft-landing economy is still possible.

Closer to home, Christine Lagarde confirmed that she expects key rates from the European Central Bank to be raised by 25 basis points in July, and said the Governing Council is ready to step up its action if necessary. Board member Gediminas Simkus said the 25-point increase next month was not set in the face of record inflation. Speaking on the sidelines of the ECB’s annual forum in Sintra, Portugal, he felt that in the case of ” inflation, acceleration, 50 basis points should be a monetary policy option for July Jerome Powell, Christine Lagarde, Bank of England Chairman Andrew Bailey and Cleveland Fed President Loretta Mester are due to speak at the ECB forum on Wednesday.

The macroeconomic program of the day is dominated by the first estimate of the evolution of consumer prices in June in Germany, as well as the latest publication on US GDP growth in the first quarter. These two figures will be published at 14:00 and 14:30, respectively, following a series of indicators on economic sentiment and consumer sentiment in the euro area.

BofA “bear” on real estate

Ikada lose 4.6%, Covivio 4.4% and Getina 3.7%. BofA analysts downgraded the first two to “low efficiency” and the third to “neutral” in a study of European real estate companies, which, according to them, face ” a real storm ¬ĽAdverse factors. Commercial real estate has also fallen as Clapier (-2.9%) and Unibail-Rodamco-Westfield (-3.6%).

As a mirror image of yesterday’s session, the automotive sector is also one of the biggest downturns. Renault fell by 2.8% and Stellantis at 2.7%. Exane BNP Paribas downgraded the latter from “superior” to “neutral”.

EssilorLuxottica loses 2.3%. The board appointed Francesco Milleri, the current managing director of the manufacturer of corrective lenses and optical instruments, as chairman. The appointment came after the death of Leonardo Del Vecchio on Monday.

Eurasio yield 1.6%. The group announced the sale of 51% of the capital of American Trader Interactive, which it still holds based on an estimate of $ 1.9 billion (1.8 billion euros).

against the trend, TotalEnergies rose by 1.2%, supported by Bernstein’s rating, moved from “built-in performance” to “super-executive”.