Cac 40 returns to minus ahead of inflation and growth test, market news

After a sharp jump the day before, the Paris Stock Exchange is again treading water this Wednesday in a market that remains volatile due to constant volatility. This is reinforced by concerns about the outlook for the global economy. Investors tend to overreact to the slightest piece of good news. But global sentiment remains pessimistic amid rampant inflation and monetary tightening by major central banks.

At 9:45 am Bedroom 40 lost 0.61% to 6049.08 points on a sluggish business volume of 310 million euros.

In New York, the S&P 500 fell 2% on Tuesday and the Nasdaq Composite fell nearly 3%, while Asian markets followed this morning, as did China’s CSI 300, which closed down 1.5%. While the quarantine period for travelers entering the country has been halved, some point out that the actual reopening of activities still depends on the zero Covid policy still in place.

Levels Rarely Seen Outside of Recessions

Days are repeated and look the same from the side of economic indicators. This time around, the business climate of the Federal Reserve Bank of Richmond and Dallas, as well as the Conference Board consumer confidence indicators, reversed sharply in June and dropped to levels rarely seen outside of a recession. says Véronique Riches-Flores of Riches Flores Research.

Fed officials are trying to downplay the risk of a recession even though Jerome Powell said it remains ” possibility New York Fed President John Williams and his San Francisco counterpart Mary Daly have acknowledged the need to lower inflation, insisting that a soft landing economy is still possible.

Closer to home, Christine Lagarde confirmed that she expects European Central Bank key rates to be raised by 25 basis points in July and indicated that the Governing Council stands ready to step up its action if necessary. Board member Gediminas Simkus said a 25 basis point increase next month is not final in the face of record inflation. Speaking on the sidelines of the ECB’s annual forum in Sintra, Portugal, he believes that in the case of ” maintaining inflation, accelerating, 50 bps should be monetary policy option for July Jerome Powell, Christine Lagarde, Bank of England Governor Andrew Bailey and Cleveland Fed President Loretta Mester are due to speak at the ECB forum on Wednesday.

The macroeconomic agenda is dominated by the first assessment of consumer prices in Germany in June, as well as the latest release of data on US GDP growth in the first quarter. These two indicators will be published at 14:00 and 14:30 respectively, following a series of indicators on economic sentiment and consumer confidence in the euro area.

BofA is bearish in the real estate market

Ikade lose 4.6%, Covivio 4.4% and Gechina 3.7%. BofA analysts downgraded the first two ratings to “Unsatisfactory” and the third to “Neutral” in a study of European real estate companies that they say are facing ” real storm » unfavorable factors. Commercial real estate also fell, as did Klepierre (-2.9%) and Unibile-Rodamco-Westfield (-3.6%).

As a mirror image of yesterday’s session, the automotive sector is also among the biggest declines. Renault fell by 2.8% and stellantis by 2.7%. Exane BNP Paribas downgraded the latter from “Outstanding” to “Neutral”.

EssilorLuxottica loses 2.3%. The Board of Directors has appointed Francesco Milleri, current managing director of a manufacturer of corrective lenses and optical instruments, as chairman. This appointment follows the death on Monday of Leonardo Del Vecchio.

Eurasian gives 1.6%. The group announced the sale of 51% of the capital it still owned to US Trader Interactive, based on a valuation of $1.9 billion (1.8 billion euros).

against the trend Total Energy added 1.2%, supported by the Bernstein rating, moved from “built-in performance” to “superior performance”.