Rising 0.9% in the early hours of the morning after falling 8% in five days, the Paris Stock Exchange quickly returned to negative territory, yielding more than 1% before cutting its losses somewhat. Investors remain nervous in anticipation of an acceleration in the tightening of monetary policy by central banks in an attempt to stem the rise in prices.
In the United States, producer prices rose 0.8% last month and 10.8% year-on-year, versus 0.8% and 10.9% respectively, according to Bloomberg consensus. Excluding food and energy, growth was 0.5% for the month and 8.3% for the year (forecast +0.6% and 8.6%). In Germany, consumer price growth was confirmed at 1.1% for one month and 8.7% for the year in harmonized data from the European Union.
Around 14:45, Bedroom 40 fell by 0.46% to 5,994.96 points, thus remaining at a three-month low with sales of 1.52 billion euros. Contracts future US indices in June add from 0.6% to 1.3%. On Monday, the S&P 500 fell 3.9%, thereby entering a bear market phase (bear market) after falling more than 20% from its high in January, signing at the same time its low of the year.
ECB ready to accelerate in September?
Klaas Knot, a member of the ECB’s governing council, believes the central bank will have to raise interest rates by more than 25 basis points in September if conditions do not change. ” The next level is raising rates by 0.5 points, but our possibilities were not necessarily limited to this. “, the president of the Central Bank of the Netherlands told the daily World.
For investors, a more aggressive central bank stance is a major risk for European equities, followed by a global recession and inflation, a Bank of America survey of managers in the region shows that respondents’ growth expectations are at historic lows.
On Tuesday, the Federal Reserve begins a two-day meeting of the monetary policy committee. The probability of tomorrow’s 75 basis points increase was estimated by the market at about 5% on Friday before inflation statistics shook things up. At the opening on Monday, it was estimated at 50%, and on Tuesday it settled at 94%.
These expectations are confirmed by an article in the journal wall street magazine assuming a rise in power is expected as a result of a new spike in inflation to 8.6% within one year, the highest level since the end of 1981. A rise of 75 basis points would certainly be surprising as the Fed makes it a point of honor to properly manage expectations in terms of monetary policy, but a gesture of this magnitude is widely accepted.
Atos splits in two, CEO leaves
Athos falls another 20.6%. The digital services group announced on Tuesday that it intends to split into two separate companies. This strategic decision will result in the departure of CEO Rodolphe Belmer by the end of September. Atos also announced the sale of its entire stake in the payments specialist. world line, or 2.5% of capital for approximately EUR 225 million (EUR 33.41 per share). The latter loses 6.5%.
Air France-KLM fell 10.1% to a record low The airline completed a €2.25 billion capital increase, a move that would see global logistics specialist CMA CGM own 9% of the air transport group’s capital. Stifel, which remains skeptical of the carrier’s track record, reiterated its “sell” recommendation. The broker believes, in particular, that equity should remain negative.
Michelin gives 2.5%. JPMorgan downgraded the tire maker from “neutral” to “undervalued” and lowered its target price from 140 euros to 110 euros. Among other analyst ratings, Citi moved from Neutral to Buy to nokia (+2.9%).
against the trend Agricultural loan, Societe Generale as well as BNP Paribas added 0.7% to 2.1%, as did the Stoxx 600 Banking Index, which climbed 1.2% after falling nearly 10% in five days.