(BFM Bourse) – The Paris Stock Exchange resumed its upward path on Thursday evening, after the announcement of a stronger than expected slowdown in US inflation in October. The CAC 40 gained almost 2% to return to 6550 points and thus return to a three-month high.
For once, good news on an American statistic is welcomed by the markets. Still down in mid-session, the Paris Stock Exchange rebounded in the space of a short time after the US Department of Statistics reported a rise in prices well below economists’ expectations.
The CAC 40 therefore closes this high-risk day up sharply by 1.96% to 6556.83 points while it was down sharply before the publication of inflation figures in the United States. The Parisian barometer even gained up to 2.20% to register a three-month high in session at 6573.85 points.
On Wall Street, the relief is also noticeable the day after a session tarnished by uncertainty about the results of the US midterm elections. The Dow Jones climbed 2.70% and the Nasdaq jumped 5.8% at the close of European stock markets
In October, the consumer price index in the United States therefore stood at 7.7% over one year and the basic index – which notably excludes energy prices, s is listed at 6.3%. Economists surveyed by the wall street journal expected respective increases of 7.9% and 6.5%. The slowdown in inflation to a low since January 2022 suggests that the US Federal Reserve’s fight against inflation is beginning to bear fruit.
“This is the fourth consecutive month of headline inflation in the United States and given that inflation excluding food and energy is also down after two months of rebound, this supports the idea that the peak of the “Inflation is in place and the US Federal Reserve will take it into account,” said AFP Alexandre Baradez, analyst at IG France.
“This beautiful turning point in the fight against inflation” has “enough to give a breath of fresh air to the riskiest assets but not necessarily lead to a massive rebound”, insofar as part of this slowdown has already been integrated into market prices, he continues.
Markets are expecting the US Federal Reserve to consider lower key rate hikes at its next monetary policy meeting in mid-December.
The big meeting of the day has somewhat relegated to the background the latest developments on the mid-term elections in the United States. The Republicans certainly still seem to be favorites to win the majority in the House of Representatives, but with a victory much shorter than what they coveted. At the level of the Senate, the suspense remains intact. According to a count of Wall Street Journal, the Democrats have 48 seats against 49 for the Republicans. If the Democrats get 50 seats (out of the 100 in total) they will retain the majority thanks to the vote of Vice President Kamala Harris.
Teleperformance no longer responds, Beneteau takes on water
As for values, the Teleperformance share is now suspended from trading after having plunged by more than 30% on Thursday. The call center manager has thus requested the suspension of his course “following the movement of sales caused by the announcement made in certain media by the Colombian Vice-Minister of Labor of his decision to open a control on the working environment in its Colombian subsidiary.”
Crédit Agricole SA, the listed vehicle of Crédit Agricole, fell for its part by 2.5% after publishing mixed results for the third quarter.
On the other hand, Engie ended up 4% driven by solid nine-month accounts which enabled it to raise its outlook for the whole of the 2022 financial year.
Excluding publications, the easing observed on rates after the inflation figures in the United States is benefiting technology stocks. STMicroelectronics, Dassault Systèmes or Worldline gained more than 7% this Thursday evening.
On the side of small and mid caps, Beneteau takes the water (-7.1%) after sales of boats a little worse than expected.
On the other markets, the euro is recovering, the renewed appetite for risk hurting the dollar, considered a safe haven. The euro zone currency gained 1.5% against the dollar at 1.0165 dollars. Oil prices are also rebounding. On Wednesday, they had fallen 3%, weighed down by US crude oil commercial reserves which had risen sharply last week. The North Sea Brent contract for January delivery is up 1.4% at $93.76 a barrel while the New York-listed WTI contract for December delivery is up 1.3% at $86.94. the barrel.
Sabrina Sadgui – ©2022 BFM Bourse