Cac 40 in the red as US inflation numbers approach, market news

The Paris Stock Exchange is starting to fall again, following a further decline on Wall Street and the expected June US inflation data. In Germany and France, consumer price inflation was confirmed at 8.2% and 6.5% respectively for the year last month, as expected. It should also be noted thatEDO asked to suspend trading in its shares until further notice. The decision follows the Prime Minister’s announcement last week that the state will increase the electrician’s capital to 100%.

At 9:45 am Bedroom 40 lost 0.67% to 6003.44 points with a business volume of 310 million euros.

On Wall Street, the S&P 500 and Nasdaq Composite fell nearly 1% on Tuesday after a volatile session, but fears of slower growth and aggressive monetary policy have taken over again. The International Monetary Fund has indeed cut its growth forecast for the US economy to 2.3% this year from 2.9% forecast in June.

The US Department of Labor will publish last month’s consumer price statistics at 2:30 pm. They were due to rise 8.8% year on year, a new high in 40 years, after 8.6% in May. Some analysts, including those from UBS and Deutsche Bank, go so far as to expect a 9% increase, mainly due to the sharp rise in gasoline and used car prices.

75 or 100 basis points?

Several U.S. Federal Reserve officials recently called for a 75 basis point hike in the Fed funds rate in July in a bid to curb inflation after raising the same amount the previous month. But a higher-than-expected figure could spur expectations of a 100 basis point increase.

Further growth in consumer prices today will undoubtedly strengthen the position of the Fed, push the dollar up and stocks down.says Opek Ozkardeskaya, an analyst at Swissquote Bank. On the other hand, a weaker-than-expected reading could revive hopes for a soft landing in the US economy and lead to a welcome pause in the dollar’s rally and thus a rebound in equities ahead of the big hits. publish your quarterly results on Thursday. However, she adds that in both cases, market volatility should remain high and visibility limited, especially given the summer decline in trading volumes. “.

In the foreign exchange market, the euro-dollar edged closer to parity at $1.00005 ahead of a jump in the single currency, which is trading at $1.0012 this morning. But a drop below $1, which will be the first since 2002, is only a matter of time, which is a real problem for the European Central Bank, pushing up energy prices and other commodities, thus fueling inflation.

Banks and techies fight

In Asia, the central banks of Korea and New Zealand raised their interest rates by 50 basis points this morning to 2.25% and 2.5% respectively. Good news from China, however, exports increased by 13.2% year on year in the first half and imports by 4.8%. Better-than-expected performance that could temporarily allay fears of a slowdown caused by the risk of new health restrictions.

Technology stocks fell among the biggest on the day following the Nasdaq and a steady inversion of the yield curve between 2- and 10-year US bonds. world line loses 3.4%, Capgemini 1.6% and Dassault Systemes 1%.

Financial stocks are losing ground ahead of the publication of quarterly results from a number of major US banks. BNP Paribasagricultural loan, Societe Generale as well as Aksa yield from 1.7% to 2.4%.

The automotive sector is also under pressure, as Renault (-2.6%), stellantis (-2.4%), fauresia (-2.3%) and Valeo (-2.4%).

Veralia on the contrary, 3.3% wins. Jeffreys began hedging the shares when “buying” up to 37 euros.

The luxury goods sector is benefiting from China’s good foreign trade performance. Hermes thus occupies 1.2% and LVMX 0.3%.