Janet Yellen and Credit Suisse put the stock market into “alert” mode, Market news

Another session of decline on the Paris Stock Exchange, operators were very cautious two days before the release of important data on inflation in the United States, which, moreover, prompted the remarkable departure of Janet Yellen, the former chairman of the US Federal Reserve, on Tuesday. . ” Powell and I could use a better term than transitional. “,” expect inflation to remain high “,” there is no doubt that we have huge inflationary pressure “The current treasury secretary told the Senate Finance Committee at a time when consumer prices have soared to a 40-year high.

On midday, Bedroom 40 lost 0.7%, to 6,454.69 points, in volume, again low, below 700 million euros. In New York, futures contracts for Dow Jones, S&P500 as well as NASDAQ Composite also decreased from 0.3% to 0.5%.

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. Statistics will be published on Friday at 14:30. Analysts expect prices to stabilize at 8.3% YoY in May, despite rising 0.5% MoM. 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. This surge in prices undermines the purchasing power of consumers and the margins of companies. This, in turn, is pushing central banks to accelerate interest rate hikes, which is detrimental to any progress in the stock markets. In this context, bond yields remain under pressure, with US 10-year yields remaining above the 3% threshold on Wednesday.

OECD revised its forecasts downward

In the meantime, operators took a close look at the new OECD forecasts this morning at the end of the morning. Not surprisingly, the Organization for Economic Cooperation and Development revised them down. 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. GDP growth was revised up to 0.6% in the first quarter in the eurozone, higher than expected 0.3%. We expect April US wholesale trade data and weekly oil inventories from the US Department of Energy this afternoon.

Ahead of US inflation, operators will be watching very closely on Thursday the European Central Bank’s monetary policy decision, and especially the press conference of its President Christine Lagarde, which should set the stage for the first key rate hike in the Eurozone, expected in July this year. ” 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. »

Credit Suisse at a loss

As far as securities are concerned, French banks are holding up well for a drop of more than 5% in Swiss loan in Zurich, which is now forecasting losses for the second quarter due to the fallout from the war in Ukraine and rising interest rates, which will weigh on the investment banking division, while the trading industry has benefited from increased volatility. BNP Paribas, Societe Generale as well as Agricultural loan lose 0.1% to 0.7%.

Exane BNP Paribas notes Saffron (+1.46%) with “excellent performance” compared to previously “neutral”, with a target price of EUR 134. The car is also surrounded, with a 4% increase in Renault and 0.9% stellantis. 0.8% increase Total Energy provides great support.

With the exception of CAC 40, Corian loses more than 9%. Thirty complaints against nursing homes run by a private group, specifically for manslaughter and endangering the lives of others, were filed by several families with a dozen prosecutors. Parisian. Indirectly, Orpea refuse 4%.