Cac 40: The Paris Stock Exchange revives before the publication of a salvo of economic indicators

Cac 40: With a 3% increase, the Paris Stock Exchange achieves its best weekly performance since the end of June

(BFM Bourse) – The Paris Stock Exchange is up more than 1% at midday. The equity markets are well oriented before the publication in the afternoon of German inflation figures for August and US consumer confidence again for the current month. Other indicators are also on the program in the United States.

the CAC 40 ends its bearish streak. The flagship index of the Parisian place revives and rebounds by 1.2% Tuesday to 6,296 points around 12:30 p.m. On Monday, it had lost 0.83% after a decline of 3.41% the previous week to post its worst weekly performance in two months.

The day before, the American indices had given ground, the investors remaining on their guard after the meeting of Jackson Hole which was held at the end of last week. The Chairman of the Federal Reserve (Fed), Jerome Powell, showed Friday his firmness in the fight against inflation, which has prompted market operators to raise their expectations for the next monetary tightening of the American central bank.

Market spur inflation

Inflation still dominates the stock market debates as investors will learn at 2:30 p.m. of this data in Germany for the month of August. The evolution of the prices of the first economy of the zone euro will be closely scrutinized as in July inflation still peaked at 8.5% last month on an annual basis. The consensus expects a further rise to 8.8% for the current month.

The evolution of prices in Germany will give some clues on the next monetary policy decision of the European Central Bank (ECB). Over the weekend, several members of the European institution took the floor to argue for a sharp hike in interest rates at the September meeting. Among them, Martins Kazaks, the governor of the central bank of Latvia, a country where inflation exceeds 20%, estimated that the discussion should be between raising rates by 50 basis points (0.5 percentage points) or 75 basis points. ECB Chief Economist Philip Lane was more cautious on Monday. The Irishman thus advocated a “regular rhythm” of increases which is neither too slow nor too fast.

In Spain, the figures are already known and show a slight slowdown in the rate of price increases on the other side of the Pyrenees. In August, inflation stood at 10.3% over one year after 10.7% in July. Excluding volatile elements (energy and food), prices nevertheless increased by 6.4% on an annual basis after rising by 6.1% the previous month.

Animation on the side of poxels and Afyren

On the values ​​front, Sanofi rises 1% as the US health authority (FDA) agrees to grant priority review of its biologics license application relating to efanesoctocog alpha (co-developed with Sobi) for the treatment of hemophilia A.

Orpea progresses on the stock market (+2.4%) after having undertaken to repay certain public aid which had been unduly received.

Carrefour returns for its part 1.2%, penalized by a deterioration of JP Morgan which now goes to neutral against previous outperformance.

On the small and mid-cap side, poxels regains 8.5% while the biotechnology company announced positive first results on Tuesday for the phase II study evaluating its drug candidate PXL065 to treat “soda sickness”.

Afyren appreciates by 6%, the Clermont “greentech” has just announced the signing of strategic contracts with two players in the cosmetics and nutraceutical markets.

L’euro, he gained ground against the dollar, gaining 0.4% to 1.0042 dollar in the prospect of a tougher tone of the European Central Bank on its key rates. Oil contracts are heading back down after their sharp rise on Monday. The October contract on the Brent of the North Sea yields 2.35% to 102.64 dollars. The contract with the same maturity for light sweet crude (WTI) listed on the Nymex lost 1.5% to 95.54 dollars a barrel.

Sabrina Sadgui – ©2022 BFM Bourse

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