CAC40: raises its head despite record inflation in Europe

( – The Paris Stock Exchange ended the session with a gain of 1.51%, at 5762 points. The Parisian index ended the month with a decline of 7.1%. If the weekly loss is limited to 0.26% the decline since the beginning of the year now exceeds 19%.

The other stock markets are also well oriented with +1.3% in Frankfurt, +0.4% in London and +1.3% on the E-Stoxx50.

Across the Atlantic, the New York Stock Exchange is on the rise after having had a choppy run this week, as investors seem to want to ignore bad news to focus on the rare reasons for satisfaction of the moment.

At the end of the morning, the Dow Jones index thus advanced by 0.4% to 29,330.6 points, while the Nasdaq Composite rose by 1.3% to 10,875.8 points.

Investors were able to learn many statistics today. Inflation in the euro zone, published at the end of the morning, set a new record of +10.00% over one year in September, against 9.1% in August.

France is a good student, but it is thanks to the energy tariff shield: consumer prices increased by 5.6% in September 2022 over one year, according to the provisional estimate carried out at the end of the month, after +5.9% the previous month.

Producer prices in French industry rose sharply again over one month (+2.3% after +2.2%) in August 2022 according to INSEE, whether the products are intended for the French market (+2.7 % after +1.9%) or external markets (+1.4% after +2.7%).

A little satisfaction all the same this Friday since in the United States, the confidence of American consumers improved well in September, but at a less marked pace than previously estimated, according to the final results of the monthly survey of the University of Michigan.

Its confidence index finally stands at 58.6, a level well below the first estimate (59.5), but still higher than the level of 58.2 which was reached in August.

The component of the judgment of households surveyed on the current situation improved to 59.7, against 58.6 last month, but the component of their expectations remained stable at 58.
However, household inflation expectations one year ahead fell to 4.7% in September, their lowest level in a year.

Consumer spending rose more strongly than expected in August: it rose 0.4% last month, the Commerce Department announced on Friday, while the consensus was for an increase of 0.2%.
Household income rose 0.3% in August, in line with economists’ expectations, with the savings rate reaching 3.5%.

The consumer price index measured by expenditure (PCE), excluding food and energy prices (known as ‘core’), rose 0.6% in August after a stability in July, where analysts expected it up 0.4%.
In annual variation, the ‘core’ PCE index – closely followed by the Federal Reserve – posted an increase of 4.9% against +4.7% in July.

Yesterday’s upward revision of the PCE index, the Fed’s preferred measure of inflation, prompted market participants to favor the most protective options.

On the bond markets, inflation at 10% in Europe is welcomed as a ‘fait accompli’: rates ease by -14Pts on our OATs to 2.78%, by -15Pts on Bunds to 2.06%, -17pts on Italian BTPs at 4.483%.
The Euro ricochets clearly below $0.985 and falls back -0.2% towards $0.9798.

On the securities side, Societe Generale announces the signing of an agreement to acquire a majority stake in Fintech PayXpert.

‘This acquisition would allow the Bank to complete its offer for merchants and e-merchants, with the ambition of being a benchmark player in the field of payment acceptance in Europe’, indicates the group.

Transplant Genomics, a subsidiary of Eurofins Scientific, announced the launch of ‘Trugraf Liver’, a new gene expression analysis tool to optimize immunosuppressive treatments in liver transplant patients.

Thales is investing in Canadian start-up AI Redefined (AIR), which has created a new AI training capability where humans and machines continuously learn from each other to meet sophisticated real-time challenges.

Finally, Societe Generale announces this evening that its Board of Directors has unanimously decided, on the proposal of the Appointments and Corporate Governance Committee, to propose to shareholders at the General Meeting of May 23, 2023 Slawomir Krupa as administrator.

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