Janet Yellen and Credit Suisse put the stock market on alert, Market news

The next session of the fall on the Paris Stock Exchange, operators were very cautious two days before the publication of important data on inflation in the United States and, moreover, led to a great exit on Tuesday, Janet Ellen, former head of the US Federal Reserve. . ” Powell and I could have used a better term than the transitional one »,« expect inflation to remain high »,« Undoubtedly, we have huge inflationary pressures “The current finance minister on the Senate Finance Committee said at a time when consumer prices were rising to a 40-year high.

At noon, Bedroom 40 lost 0.7% to 6454.69 points, which is again small, less than 700 million euros. In New York, futures contracts on Dow Jones, S & P500 and Nasdaq Composite also decreased from 0.3% to 0.5%.

At 8.3% for the 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%). Statistics will be released on Friday at 2:30 p.m. Analysts expect a stabilization of 8.3% of the year-on-year price increase in May, despite a 0.5% month-on-month increase. Excluding food and energy, ie excluding volatile elements, it is expected to decline to 5.9% in one year after 6.2% in April. Such a rise in prices undermines the purchasing power of consumers and the profitability of companies. This, in turn, encourages central banks to accelerate interest rate hikes, which is detrimental to any progress in stock markets. In this context, the yield on 10-year US bonds remains above the 3% threshold on Wednesday.

The OECD is revising its forecasts downwards

Meanwhile, this morning, operators carefully read the new OECD forecasts in the late morning. Not surprisingly, the Organization for Economic Co-operation and Development has revised them downwards. 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. GDP growth in the first quarter of the euro area was revised to 0.6%, which is higher than the expected 0.3%. This afternoon we expect wholesale statistics for April in the United States and weekly oil stocks from the US Department of Energy.

Ahead of US inflation, operators are closely watching the European Central Bank’s monetary policy decision on Thursday, and especially its president Christine Lagarde’s press conference, which is set the stage for the first increase in key eurozone rates, expected in July this month. ” The only real question before this week’s meeting is not whether the Governing Council 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. »

Credit Suisse at a loss

As for securities, French banks are doing well against falling by more than 5%. Swiss loan in Zurich, which is now forecasting losses for the second quarter due to the effects of the war in Ukraine and rising interest rates, which will affect the investment banking division, and the trading branch has benefited from increased volatility. BNP Paribas, Societe Generale and Agricultural credit lose from 0.1% to 0.7%.

Exane BNP Paribas noted saffron (+ 1.46%) on the “higher”, against the “neutral” before, with a target price of 134 euros. The car is also surrounded, an increase of 4%. Renault and 0.9% of Stellantis. An increase of 0.8%. TotalEnergies provides more support.

With the exception of CAC 40, Corian loses more than 9%. According to the prosecutor’s office, several families have filed 30 complaints against nursing homes run by a private group, including for unintentional homicides and threats to the lives of others. Parisienne. indirectly Orpea give up 4%.