CAC40: remains in balance despite a sharp decline in the Nasdaq and S&P


(CercleFinance.com) – The CAC40 continues to oscillate with an amplitude of 0.1 to 0.15% in the red or green around a pivot of 7,980 Points (zero performance in May, negative -1, 5% over the past week).
The most anticipated figure of the week, the ‘PCE’ index in the United States (and incidentally inflation in the Euro zone) turns out, as it often does, to constitute a ‘non-event’, insofar as its publication leads to variations that are barely measurable on the stock market indices, and frankly marginal on the bond market.

Wall Street which had reopened in the green – for the symbol – with indices which rose by a handful of points is now moving more clearly downwards with the S&P500 at -0.4%: it now loses 1.3% over the week but gained more than 4% in May.
The Nasdaq, which was pointing towards 16,750 at the opening, now gives up -1.2% to 16,540, which reduces its monthly gain to less than 6% against +7% Thursday evening.
The Dow Jones is the only one to remain positive, with less than 0.1% gain towards 38,150.
T-Bonds also eased by a handful of basic Pts with a ’10 year’ at 4.50% against 4.554% on Thursday (the consensus on a first rate cut in September rose from 45 to 50%).

The PCE price index – the most monitored by the Fed – shows a stable annual inflation rate for the month of April compared to March, at 2.7% in raw data and at 2.8% in ‘ core’ -or underlying excluding energy and food-, figures in line with the consensus.
The Department of Commerce, which publishes these figures, also indicates that American household spending increased by 0.2% in April compared to the previous month (+2.65%/1 year), while their income increased. of 0.3% (in line with expectations).

There were also figures relating to inflation in Europe: the provisional estimate of ‘CPI’ inflation in France for May was unchanged at +2.2%).
Investors also took note this morning of the evolution of prices throughout the euro zone: the ‘CPI’ is estimated at 2.6% in May 2024, therefore reflecting an acceleration in the rise in consumer prices after a rate of 2.4% the previous month, according to Eurostat’s ‘rapid estimate’.

These data will not dispel seeing the ECB pass its turn in terms of rate reduction during the ECB monetary policy meeting next Thursday, especially since German inflation, revealed on Wednesday, is increasing. is revealed to be of poor quality at +2.4% in total and +3% underlying.

Capital Economics, however, does not believe the May hike will deter the ECB from cutting rates next week, given that it is due to temporary factors, but warns that a July pause ‘now looks more likely’.
The reaction of currency traders, however, seems more cautious: the Euro is up +0.2% against the dollar at 1.0855.
The $-Index only lost -0.15% towards 104.55, the Yen fell back towards 157.2.

In Parisian stock news, Renault Group announces the official launch of HORSE Powertrain Limited, its 50/50 joint venture with the Chinese manufacturer Geely, a joint venture specializing in engines and transmissions.

Sanofi indicates that the CHMP of the European Medicines Agency has adopted a favorable opinion for the approval of its Dupixent in the EU as a complementary maintenance treatment in chronic obstructive pulmonary disease.

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