(CercleFinance.com) – There are not many bearish intraday reversals this year but this Tuesday 13 will be among the most violent of the 2022 edition!
The CAC40 went from 6,394 to 6,260 in 2 hours (from +1% to -1.1%), pullback puts an end to a series of five upward sessions.
Same scenario for the Euro-Stoxx50 and for the DAX which lost -1.3% against +1.1% at 2:28 p.m.
On Wall Street, the shower is proving to be very cold with -2.6% on the Dow Jones, almost -3% on the S&P500 (-back below 4000) and the Nasdaq is flirting with -4% towards 11,800 ( starting from 12.260 the day before): a rupture ‘gap’ makes this fall more formidable from a technical point of view.
The consumer price indicator in the United States (CPI) for August rose by +0.1% instead of -0.1 to -0.2% expected.
The Labor Department reveals that the U.S. consumer price index stood at 8.3% in August compared to the same month last year, an annual rate down from 8.5% in the month previous, but Jefferies anticipated a decline to 8%, in the wake of fuel prices on US soil.
Excluding energy (+23.8%) and food products (+11.4%), two traditionally volatile categories, the annual inflation rate stood at 6.3% last month, a level again higher than that of 6% anticipated by Jefferies and most brokers like Goldman Sachs.
Sequentially, i.e. between July and August 2022, consumer prices in the United States increased by 0.1% in raw data and by 0.6% excluding energy and food products: this denies the hope that the peak of inflation had been exceeded in July.
‘If core inflation were to rise, this would reverse a series of three months of decline and would put a little more pressure on the Fed to toughen its tone at its September 19 meeting’, warns La Financière de l ‘Chessboard.
This morning, the markets had reacted positively to the ZEW index under the principle ‘bad news = good news: the ZEW economic sentiment barometer for Germany fell by 6.6 points to a value of -61.9 in September, while that of the economic situation fell quite sharply by 12.9 points to currently stand at -60.5.
“The prospect of energy shortages in winter has made expectations even more negative for much of German industry. In addition, growth in China is evaluated less favourably,” explains Achim Wambach, president of the ZEW institute.
For the euro area as a whole, financial market experts’ sentiment regarding economic development fell by 5.8 points to -60.7 and that of the current situation plunged even more sharply, from 16.9 points to -58.9.in investor sentiment in Germany, which could fuel fears about European growth.
This session was also painful on the bond side: the yield on ten-year Treasuries rose 8.5 basis points, to 3.45%, flirting with the worst levels of mid-June.
The ‘2 year’ soared by +15Pts beyond 3.72%, the ‘1 year’ by nearly +20Pts to 3.86%, annual record pulverized.
The German Bund tightened by +8Pts towards 1.725% (the 1.75% recorded before yesterday were re-tested on Tuesday), our OATs show +8Pts at 2.295%.
The dollar rose strongly (+1.2%), rising from 1.0140 against the euro to 1.0010.
Oil prices fell by -2% per barrel of Brent fell back to 92.2 dollars and light crude ‘WTI’ dropped 2% to $86.3.
On the stock side, Bouygues Travaux Publics is expanding its offer of infrastructure solutions for offshore wind power, with the exclusive acquisition of the OO-STAR floating base technology, owned by Floating Wind Solutions. This technology makes it possible to adapt to a large number of marine environments, reduce the carbon footprint of wind farm infrastructure and reduce operating and maintenance costs.
Aveva is close to reaching an agreement with Schneider according to Sky News. Schneider could take over Aveva based on a valuation of £9 billion.
According to Sky News, the two groups would discuss buying 40% of Aveva which Schneider does not already own on the basis of a price of more than £30 per share. Schneider already holds 60% of the capital. This amount would value the purchase price of the 40% at around £3.5 billion. This agreement should be concluded before September 21 according to banking sources interviewed by Sky News.
Air Liquide announces the sale of its Industrial Merchant activities in Saudi Arabia to Abdullah Hashim Industrial Gases & Equipment, a joint venture of Air Products for its Industrial Merchant activity in Saudi Arabia. This sale is insignificant for the entire scope of Air Liquide in the Africa Middle East and India zone.
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