(BFM Bourse) – The CAC 40 is trending down mid-session on Wednesday, as inflation accelerated in Spain and the German Länder in August. Stocks heavily exposed to Gabon plunge following a coup attempt in the country.
The Paris Stock Exchange gives in to caution. The CAC 40 dropped 0.57% to 7331.42 points at mid-session on Wednesday.
The acceleration of inflation in Spain is not very good news for the market. In August the consumer price index increased by 2.6% in August over one year against 2.3% the previous month. In addition, several German Länder (regions) saw inflation accelerate in August, according to data provided by each region. The market expects this afternoon the first estimate of the publication of German headline inflation for the same month.
These data could complicate the task of the European Central Bank (ECB), which must currently bring inflation down to a level close to 2% without hurting the economy too much.
>> Access our exclusive graphic analyses, and enter into the confidence of the Trading Portfolio
Gabon weighs down Maurel & Prom and Eramet
Several economists expect the central bank to take a break on rates next month.
Market operators are also awaiting the publication of the second estimate of the US gross domestic product for the second quarter this afternoon as well as the ADP report on US employment. These latest figures will constitute a prelude to the official report which will be published on Friday afternoon.
As for values, the CAC 40 is weighed down by luxury, while Hermès and LVMH each drop around 1.2%. Conversely, Carrefour rebounded (+1.5%) after falling 4.6% on Tuesday, penalized by market share losses in France.
Especially the values which have a strong exposure in Gabon plunge, following the attempted coup d’etat in the country. This is the case for the oil group Maurel & Prom (-19.6%) and the mining company Eramet (-18.5%).
On other markets, the euro fell 0.07% against the dollar to 1.089 dollar. Oil prices are rising. The North Sea Brent crude contract for October delivery advanced 0.6% to $85.41 a barrel. That of the same term on the WTI listed in New York rose 0.8% to 81.80 dollars a barrel.
Julien Marion – ©2023 BFM Bourse