Cac 40 is down again despite support from TotalEnergies at its highest level in four years on the stock market, Market News

The Paris Stock Exchange ended Wednesday’s session lower. in Bedroom 40 fell 0.8% today to close at 6448.63 points. On Wall Street, the Dow Jones and S&P 500 are down about 0.2%.

The new US inflation data for May will be released on Friday and is of course on everyone’s mind as the topic is very sensitive, rising consumer and producer prices are hurting household consumption and business margins. To the point where Janet Yellen, former US Federal Reserve President and Secretary of the Treasury, was visibly alarmed yesterday in front of the Senate Finance Committee. Among a few selected quotes: “Powell and I could use a better term than ‘transitional’., “expect inflation to remain high” or “There is no doubt that we have huge inflationary pressures”.

I must say that consumer prices are rapidly approaching 40-year highs. Inflation in the United States, at 8.3% yoy in April, is certainly down a little from 8.5% in March, but not as much as the 8.1% consensus had hoped. This Friday, analysts are expecting a stabilization at 8.3% y/y in May, despite gaining 0.5% y/y. Excluding food and energy, i.e. excluding volatiles, it is nonetheless expected to decline to 5.9% for the year after 6.2% in April. In this context, bond yields remain under pressure, with yields on the remaining 10-year US bonds remaining above the 3% threshold on Wednesday.

OECD lowers forecasts

In anticipation of this key event of the week, operators were able to take a close look at the new OECD forecasts this morning. It is not surprising that, like the World Bank yesterday, the Organization for Economic Cooperation and Development revised them downward. He now projects global gross domestic product (GDP) growth of 3% this year, up from 4.5% in December, and then 2.8% in 2023, down from 3.2% earlier. Inflation is expected to peak at 8.5% before falling to 6% in 2023 from 5% and returning to 3% next year.

Also, ahead of US inflation, operators will be watching the European Central Bank’s decision on monetary policy tomorrow very closely, and especially its President Christine Lagarde’s press conference, which should pave the way for the first rate hike. for the month of July. “The only real question ahead of this week’s meeting is not whether the Board of Governors will raise interest rates in July, but by how much.summarizes the research firm Ebury, some members seem to favor more aggressive measures [que 25 points de base], especially Knot and Holtzmann. Markets will want to know if this is the opinion of a small number of board members or the opinion of many. »

Heavy blow for Korian

Among the few significant changes of the day, we note an increase of 3.8% Renaulton top of Cac 40 as the automaker launched a share buyback program that began today and could run until June 14.

Exane BNP Paribas notes Saffron (+0.39%) with “excellent performance” compared to previously “neutral”, with a target price of EUR 134.

Total Energy (+1.45%) has benefited from a further rise in oil prices, Brent is trading at almost $122 per barrel (+55% YtD). Tanker shares are at their highest level in four years on the stock market.

Outside of the flagship index, we find the biggest drops of the day, such as Corian, which fell by 9.5%. According to Le Parisien, several families have filed 30 complaints against nursing homes run by a private group, in particular for manslaughter and endangering the lives of others.