Cac 40 engages reverse gear, Fed is determined to fight inflation, market news

Fed it’ firmly determined to fight inflation. This statement was made by the head of the US Federal Reserve Jerome Powell during a semi-annual hearing in the Senate Banking Committee on Wednesday. Faced with rising prices that continue to rise, the monetary institution indicated that rates will continue to rise at a rate that will depend on the next economic indicators, until the advent of ” compelling evidence shows that inflation is slowing down. At the last three meetings, the Fed has already raised interest rates federal funds by 150 basis points in total to bring them into the range of 1.50% to 1.75%. ” We have both the necessary tools and the determination to restore price stability on behalf of American families and businesses. said Jerome Powell, adding that the rise in the value of money could possibly trigger a recession. This ” it will be very difficult achieve a soft landing for the economy. He added that at the moment economic conditions are generally favorable, the labor market is strong and demand is still strong.

Decrease in oil prices

There is nothing surprising in these words. And don’t shed any light on the scope of future rate hikes. In the stock market, already risk-averse operators stayed away from the stock markets, even if the fall Bedroom 40 declined in the afternoon thanks to Wall Street. By the close, the Paris index lost 0.81% to 5916.63 points, nullifying all the gains made the day before. The volume of business is 3.4 billion euros. across the Atlantic Dow Jones was stable at the end of the European session, while NASDAQ Composite receives 0.9%.

A sign that operators fear a slowdown in the economy was the fall in oil prices. Trunk North Sea Brent fell 4.1% to $109.7, while the US benchmark WTI lost 4.5% to 104.7 points. Their decline was exacerbated by the US President’s decision to ask Congress to suspend the federal tax of 18 cents per gallon (3.78 liters) on diesel and gasoline for three months to make life easier for consumers. He is also preparing to call on the country’s 50 states to temporarily abolish their own taxes on petroleum products. In Paris, VGG, Vallorec as well as Total Energy fell from 2.88% to 7.41%.

JPMorgan and Umicore double share of ArcelorMittal

Among other values, ArcelorMittaI fell 9.56% after JPMorgan downgraded the stock from overweight to neutral. To make matters worse, the Belgian non-ferrous metals specialist Yumicor a drop of 8.02% in Brussels after the announcement of an investment plan of 5 billion euros by 2026”, significantly higher than Jeffries’ projections, which will weigh on the bills in the coming years.

Also abused, Rexel fell 5.41% after a Mediapart article raised suspicions of Swiss tax evasion and illegal price fixing. Schneider Electric (-1.5%) and Big (-1.5%) is also in turmoil.

Derishbur fell by 5.66%. Oddo BHF downgraded its recommendation on the business and environmental services group from overweight to neutral and lowered its price target from €14.50 to €9.50. Conversely, Barclays has gone from “underweight” to “online weigh-in” as a telecom operator. Orange (+1.65%).