Stock market cooling due to reading inflation figures is slightly higher than expected in the United States. This was a key indicator of this session. In April, consumer prices rose 0.3% for the month, slightly more than the 0.2% expected by the Bloomberg consensus. In one year, inflation rose to 8.3%, still at its 40-year peaks, exceeding expectations of 8.1% from 8.5% in March.
In Paris, the Cac 40, which rose more than 2% at noon, slowed sharply, only to gain a few shares before recovering. Around 16:00, the flagship index rose again by 1.75% to 6228.87 points. Green and in New York, and futures contracts fell at the time of publication of inflation data. The Dow Jones and Nasdaq Composite indexes rose just over 0.5%.
The main effects
For Andrew Hunter, a senior American economist at Capital Economics, ” core effects should continue to reduce annual inflation rates in the coming months “, Which calms him down. Optimists also prefer to note that the trend is slowing from month to month: in April, prices rose by 0.3% compared to March against an increase of 1.2% in February-March. You should see lower energy prices. For its part, the “main” index for the month increased by 0.6%.
The difference ” partly reflects a record increase in ticket prices by 18.6%, as the demand for travel is recovering, as well as rising prices for hotel rooms. Ticket prices have jumped almost 35% in the last three months and are now about 15% higher than before the pandemic, which, given the higher cost of aviation fuel, is not a complete surprise. “, Again analyzes Andrew Hunter.
Inflation was also on the agenda in China and Germany. In the first country, the producer price index rose 8% more than expected by 7.7% in one year in April. Over the year, consumer prices rose by 2.1% against expectations + 1.9%. However, on Wednesday, Chinese stocks were in the “green” direction, as evidenced by data showing that the number of daily viral infections is falling in Beijing and Shanghai, where restrictions may be lifted very soon. In Germany, inflation was confirmed at 7.8% for the year in April.
Alstom jumps, then dives
On the corporate side, a cold shower for Alstom. However, the title rose 9% during the first exchanges and then fell to 11%. The stock exchange was very warmly welcomed at first. ” a good surprise for free cash flow the second half turned out better than expected, according to Oddo BHF. But during a telephone meeting to report, there was a radical change of mood, according to Bloomberg.
Analyst James Moore of Redburn reports that management has limited itself to comparing free cash in the second half of the year to the same period last year, declining to answer questions from the financial community about the factors that led to the increase from one semester to the next.
In the same vein, William Mackie of Kepler Cheuvreux also explains that during the conference, analysts and investors remained focused on improving free cash flow and, in the absence of a response, concluded that the increase was due to factors. ” Bad quality “, Which were not intended to be repeated.
Saint-Gobain occupies 0.9%. The Bluebell Capital Partners Activists Foundation has called on the group to change its business and replace its head to counter what it calls ” disappointing performance “, The newspaper reports FinancialTimes.
Eiffage (+ 1.2%) confirmed its forecast after a 10% increase in activity in the first quarter. In February, Eiffage aimed to slightly increase its construction and public works activities in 2002 and increase concessions more steadily, with results expected to improve in two divisions.