Another very mixed number on US prices, not enough to revive Cac 40, market news

The Paris Stock Exchange held steady in the red on Thursday, significantly down around 2% now. In the middle of the afternoon, the Cac 40 lost 1.9% to 6,152.92 points, giving up much of its gains the previous day after dropping 2.7% to its lowest level during the session. In the question, the new fall of Wall Street on the first stock exchanges (-1.06% for the Dow Jones, -1.6% for the Nasdaq Composite), US operators showed themselves uneasy about the recent figures regarding the development of prices across the Atlantic .

In New York, as elsewhere, eyes have already been focused on the second statistics of the week regarding the development of prices in the United States, in relation to those who have production this time. With the same observation as the day before, for their consumer counterpart. They have calmed down a bit from their March peak, without being completely reassured about the rapid slowdown. On an annual basis, producer prices rose 11%, less than the 11.2% increase seen the previous month, but more than the target of 10.7%. It rose 6.9% in “core” data, that is, excluding volatile items such as energy and food, versus the expected 6.6%. Compared to March, the increase was 0.5% in published data and 0.6% in “core” data, as expected.

Yesterday, consumer prices expelled investors. At 8.3%, one-year inflation was, hopefully, below 8.5% in March, a 40-year peak, but higher than the 8.1% expected according to consensus. Suffice it to prove that both optimists are right – but perhaps more so are the pessimists in light of last night’s Wall Street development – regarding the evolution of prices in the country…

The cost of living crisis

Core inflation of 6.2% in April means, for Allianz’s chief economic adviser, Mohamed El-Erian, that there are many factors now at play in shaping the price.” It is only a matter of time before we talk about the cost of living crisis. It is no longer just about the war in Ukraine, it is about a process of massive inflation that the Federal Reserve has failed to manage. “The delay that may have to be compensated for by steep increases in interest rates from mere 50 basis point hikes in Federal funds At future FOMC meetings.

On the other hand, for Véronique Riches-Flores, Economist at Riches-Flores Research, ” Undoubtedly, this report raises the possibility that peak US inflation is behind us. (…) notes Air ticket prices rose 18.5% in one month, the largest increase in the index by far, without which the monthly increase in the core index would have been 0.4%, rather than the 0.6% that markets took a bleak view of hope for a possible easing of tensions over interest rates (. ..) The rise in the prices of recreational goods or services, for example, by about half less than two or three months ago. Clothing prices fell 0.8%. Rent increases, which are especially feared after those observed in the real estate market, do not accelerate ostentatiously “.

STMicro as a “survivor” of the session

As for values, the luxury segment, which concentrates more than 20% of the weight of the Cac 40, throws its weight on the trend, keyringAnd Hermes And LVMH It fell 3.4% to 4.1%. Another company that is expensive on the stock exchange and sensitive to increased interest rates, Dassault Systems lose 3%. periodicals Renault And Arcelor Metal It gives up 5.5% and 4.3%.

Veolia EnvironmentBut it lost 5.4% ahead of its plan in the first quarter after its merger with Suez. Some analysts think the outlook is a bit conservative.

Puig (-0.8%) Better resistance. The construction and communications group revealed bills of 8.2 billion at the end of March, up nearly 6% from an operating profit loss of 77 million, stable over one year, but less robust than analysts fear. Annual forecasts are maintained.

As part of Investor Day, STMicroelectronics It indicated that it is targeting sales of over $20 billion for the period 2025-2027, with a gross margin of around 50%. The letter was received 5 out of 5 on the stock market, the address of the French-Italian semiconductor manufacturer showing the strongest rare increases in Cac 40 (+3.1%).

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