Closing Paris: the CAC40 falls after American inflation


(Boursier.com) — THE TREND

The Paris stock market remained slightly down throughout Wednesday’s session, with the CAC40 ultimately down 0.42% to 7,223 points at the end of the session.
Money markets now attribute a probability of 70% to an additional tightening by the European Central Bank on Thursday, compared to a probability of 20% at the start of the month… This development comes after information from ‘Reuters’ according to which the news The ECB’s economic projections will show an inflation forecast for 2024 above 3%, strengthening the case for further monetary tightening. The European Institution has increased its deposit rate from -0.5% to 3.75% over the past 14 months, the fastest rate of monetary tightening in its history. And everything suggests that the cycle is not yet over.

Investors were also watching the publication of monthly data on consumer prices in the United States, which could influence the monetary policy decisions of the Federal Reserve next week.
The American inflation figures for the month of August ultimately came out somewhat disappointing: the consumer price index excluding food and energy increased by 0.3% compared to the previous month, compared to 0.2% in consensus and 0.2% a month before. Over one year, adjusted inflation is therefore 4.3% excluding volatile elements, compared to 4.7% a month earlier and 4.3% market consensus. Overall inflation stands at 3.7%, compared to 3.2% a month earlier and 3.6% consensus. The increase in consumer prices from one month to the next stands at 0.6%, close to economists’ expectations, compared to 0.2% a month earlier…
The euro is hovering above $1.07, while oil peaks at $92 per Brent.

RISING VALUES

Dare rises another 19% after hopes of a curative vaccine in lung cancer

Claranova climbs 11% with Inventiva (+10%)

Ubisoft regains 3.7% while JP Morgan adjusted the slider from 25 to 26 euros, while remaining ‘neutral’ on the file.

LFE : +3% followed by Believe (+2%) with Genfit and Synergie

Accor 2% advance. S&P yesterday evening raised the hotel group’s long-term credit rating from ‘BB+’ to ‘BBB-‘. The outlook changes from ‘positive’ to ‘stable’. “Accor continued to demonstrate a strong recovery in its operational performance in the first half and we expect continued resilience throughout the remainder of the year,” the agency said. “Even if the group plans to resume share buybacks and dividend payments in the short term, we expect it to make financial policy choices allowing it to maintain credit indicators consistent with an investment grade rating investment”.

The only significant increase among CAC40 values, Renault gains 2%.

Guillemot : +1.5% with FDJ, ALD, Aramis, AXA

Sodexo : +1% followed by BioMerieux, Lhyfe, FNAC Darty, Icade, SG, Crédit Agricole, Trigano

JCDecaux (+0.4%) was selected to deploy and operate the indoor and outdoor advertising media at Bordeaux Airport.

FALLING VALUES

Rally : -6% followed by Poxel (-5%), AB Science, Linedata

Strongest drop in the CAC40, Alstom loses 4%. The seller flow on the file is linked to a note from Barclays which started monitoring the value with an ‘underweight’ advice and a target of 16.5 euros. The market nevertheless remains largely positive on the railway group since, according to the ‘Bloomberg’ consensus, 16 analysts are ‘buy’, 6 are ‘hold’ and 3 are ‘sell’. The twelve-month average objective is set at 30.41 euros.

Altamir : -3.5% with SII, CGG, Vallourec, Casino, Verallia

Haulotte yields 2.7%. Portzamparc reduced its target price from 3.3 to 3 euros (‘keep’).

ADP : -2.5% followed by Schneider followed by S30, Rexel, GL Events

Nexans : -1.5% with Guerbet, Mersen, Crit, Air France KLM, Capgemini, TechnipEnergies, Bic, Orpea

Dassault Systèmes fell 1% to 35 euros, while the broker Barclays lowered its price target from 40 to 37 euros with an ‘online weighting’ opinion.



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