(CercleFinance.com) – The CAC40 is back to square one (it gains around 0.25% towards 6.626 after having rocketed more than 1% upwards, towards 6.684 (+1.1%) after the publication of a PPI in the United States, which shows a slowdown in producer prices on an unexpected scale.
The Euro-Stoxx50 is more vigorous and maintains +0.6% gain against +0.1% before the ‘PPI’.
On Wall Street, the Nasdaq is almost euphoric with +2.1%, far ahead of the S&P500 with +1.3% and the Dow Jones with +0.7%.
US investors exult as according to the Labor Department, producer prices in the United States rose only 0.2% in October compared to the previous month instead of +0.4% expected, as well as regards the ‘PPI Core’ (excluding food, energy and commercial services).
Over the last twelve months, the rise in producer prices stood at 8% in raw data in October (against 8.3% expected) and at +6.7% excluding food, energy and commercial services (against 7.2 % expected).
In other good news, manufacturing production in the New York area returned to growth in November, according to figures released Monday by the New York Federal Reserve.
Its ‘Empire State’ index thus came out at +4.5 against -9.1 in October (against -5 expected), in positive territory for the first time since last July.
The shipments sub-index rebounded to 8 from -0.3 last month, while the inventory index improved to 16.5 from 4.6.
The employment component rose to 12.2 from 7.7 the previous month, while that of prices paid rose to 50.5 from 48.6 in October.
There were also figures in Europe: this morning, investors were able to find out about the unemployment rate in France as defined by the ILO (International Labor Office): it remained almost stable (-0.1 point) at 7, 3% of the active population in the third quarter of 2022, compared to the previous quarter.
This rate has thus fluctuated between 7.3 and 7.4% since the fourth quarter of 2021, at a level 0.7 point lower than that of the third quarter of 2021 and 0.9 point lower than that of before the health crisis (end 2019).
Another statistic published by INSEE, consumer prices in France increased by 6.2% in October in annual variation, accelerating, therefore, after +5.6% in September, in accordance with the provisional estimate unveiled at the end of last month.
This acceleration in inflation reflects that of the prices of food (+12%), energy (+19.1%) and manufactured goods (+4.2%) while the prices of services slow down slightly in October (+3.1%).
Core inflation increased over one year, reaching +5% in October, after +4.5% the previous month. The harmonized consumer price index (HICP) increased by 7.1% last month, after +6.2% in September.
While the Parisian index has just won 17% since the end of September (+1,030Pts), it would take a spectacular relaxation of rates to make such an increase sustainable.
US T-Bons fell -6.5 Pts to 3.805% on the ’10 years’, the ‘2 years’ posted 4.35%.
In Europe, nice relaxation on our OATs with -8pts and the gap is similar on the Bunds. The yield on Italian BTPs fell dramatically by -16pts to 4.03%.
Lots of volatility on the $ initially very weakened by the ‘PPI’ (it plunged by -1% towards 105.50 ($-Index) while the E/$ pair shifted by 1.1% with a falling Dollar below 1.045… but it recovered to 1.0370/E and only lost -0.5%.
The dollar even fell -1.2% against the £, while Jeremy Hunt is expected to announce on Thursday very painful measures to restore British finances with tax increases and heavy spending cuts.
In company news, TotalEnergies, operator of exploration block 9 with a 60% stake alongside Eni (40%), announces the signing of a framework agreement with the State of Israel to implement the maritime border agreement finalized between Israel and Lebanon on 27 October.
On the occasion of the presentation of its refoundation plan, Orpea’s objectives for 2025 are 9% annual growth in turnover and an EBITDAR margin of more than 20% for an EBITDA excluding IFRS 16 estimated at 745 million euros (12.2%).
Atos announces that Leonardo, the pre-exascale Italian EuroHPC supercomputer, based on Atos’ BullSequana XH2000, is now the fourth most powerful supercomputer in the world and the second in Europe, according to the new TOP500.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
