(BFM Bourse) – The CAC 40 is moving up sharply at mid-session on Thursday. The attention of market operators is focused on the publication, in the early afternoon, of the consumer price index in the United States.
The Paris Stock Exchange clings to its upward trend before the big meeting of the afternoon. The CAC 40 thus advanced by 0.94% at mid-session, to 6,989.02 points, and is now approaching 7,000 points, which it has not reached since the beginning of 2022.
“Today is when we will receive the most important economic figure that will either make or break the current rally” in the markets, warns Naeem Aslam, market analyst at AvaTrade, referring to US inflation.
The consumer price index in the United States for the month of December will be published at 2:30 p.m. Economists surveyed by the wall street journal anticipates a slowdown with an increase of 6.5% over one year, against 7.1% in November. The “core” index (base), that is to say excluding energy and food prices, is expected at 5.7% against 6% the previous month.
Disappointment is possible
“If core prices were to be higher than expected, we could see a sharp downward correction in equities and a sharp rebound in the US dollar,” as well as higher expectations of higher benchmark rates. US Federal Reserve, by 50 basis points (0.5 percentage points) in February, estimates Michael Hewson of CMC Markets.
For the time being, market operators are expecting an 80% increase in the Federal Reserve (Fed) key rates by 25 basis points at the February meeting.
As for values, the drop in bond yields that recently took place on the markets is carrying real estate. Unibail-Rodamco-Westfield posted the strongest rise in the CAC 40, with an increase of 3.8%, Klépierre advanced by 3.1%, Covivio gained 2.7%.
Two big warning shots should however be highlighted on the SBF 120. Orpea fell 15% after having recorded a rise of similar magnitude the day before. The group recalled Wednesday after the market closed that a massive dilution linked to its financial restructuring awaited its shareholders. This brought a concert of investors to reiterate their criticisms and their opposition to the restructuring plan.
Ubisoft also plunged 15% after issuing a resounding profit warning and announcing cost-cutting measures, following disappointing game sales this winter.
On the other markets, the euro was almost stable against the dollar at 1.0763 dollars. Oil contracts are moving up. North Sea Brent rose 1.2% to $83.65 a barrel while New York-listed WTI also advanced 1.2% to $78.31 a barrel.
Julien Marion – ©2023 BFM Bourse