(CercleFinance.com) – Jerome Powell dampens hopes of rate easing in the ‘foreseeable future’ and the markets feel it: the CAC40 (now stable) erases its 0.7% gain posted at 3:30 p.m. (opening of Wall street).
Wall Street looks gloomy: after starting the session at +0.4/+0.5%, the tide turned and the Dow Jones lost -0.15%, the S&P500 -0.4% and the Nasdaq -0.6%.
But the pullback that has been taking shape for 1 hour is not the only ‘fact of the day’: the fluctuations of the CAC are taking place against a backdrop of a real collapse in volumes on the eve of the weekend with less than 950MnsE traded in 8 hours (against 1 .1 to 1.2 MdE the previous sessions).
It becomes difficult to find a qualifier for such a desertion when the whole volume of a session in Paris is equivalent to 1 fifth of the daily trading on Apple stock alone.
The Euro-Stoxx50 also returned +0.6% to square one and the DAX fell -0.1%.
On the occasion of his (short) speech, the head of the FED takes up most of the elements unfolded during the recent post-FOMC press conferences.
‘Inflation has slowed but remains too high, the problem is far from being completely resolved, it is not certain that the current fall in prices will last.
Current underlying growth remains above the historical average, which could fuel inflationary ferment: we will therefore have to maintain restrictive monetary conditions over the long term and the FED stands ready to raise rates if necessary (in other words, a rate cut is not an option during the next FED meetings).
The tightening of credit conditions is slowing down the ‘services’ sector, job creation is slowing down, the number of hours worked is stagnating but there are signs of a rebound in activity in the real estate market.
Wall Street therefore seems to consider that the FED remains faithful to a ‘hawkish’ line that gives priority to its objective of fighting inflation.
This closes the door to a ‘pivot’ in the foreseeable future.
The bond market takes the hit with T-Bonds which stretch by +4Pts to 4.272%, the ‘2-year’ jumps by +7Pts to 5.085% (worst level for 17 years and 2 months) and the ’30-year’ takes +4pts to 4.34%.
The Dollar took advantage of this and gained 0.3% to 1.0780/E, the Dollar Index recrossed 104.
In the news of French companies, JCDecaux posted the largest rise in the SBF 120 on Friday on the Paris Stock Exchange (+3.6%), Deutsche Bank having gone to the purchase on the title, estimating that the current price offers a interesting opportunity.
Olympique Lyonnais (OL Groupe) informed Thursday evening of the transfer of Karl Toko-Ekambi to the Saudi Pro League club, Abha FC, for an amount of 1.5 million euros to which 500,000 euros in bonus could be added.
Nacon unveiled its highly anticipated new game ‘Robocop: Rogue City’ on Friday, hoping to boost sales through the holiday season.
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