From the start of the morning, the Parisian market had, in the wake of the Asian markets, shown signs of weakness, in the face of the certainty that the central banks will continue their monetary tightening in order to stem inflation. the Bedroom 40 fell to a low of 6,052.42 points, before recovering a little and ending at 6,077.30 points, down 1.31% from Thursday evening’s level. Over the week, it fell by 2.17%. Paris, however, is doing better than the American indices, in particular the Nasdaq Composite, which fell by around 6% over five days. The massive central bank rate hikes that are looming are reducing the profit prospects of technology stocks, which are growth stocks par excellence. A few days before the meeting of the monetary policy committee of the American Federal Reserve (Fed), investors no longer have any doubt: the key rates will again be raised, most certainly by 75 basis points, or even 100 points. basis, i.e. 1 percentage point.
On Tuesday, US inflation figures for August were disappointing. It exceeded expectations, at 8.3% over one year. Published on Friday afternoon, the 1-year inflation expectations component of the University of Michigan confidence index stood at 4.6%, as expected, after 4.8% in August. Still a very high level. On the eve of the weekend, the probability of a three-quarters point increase in the cost of money is …%, if we rely on the calculations of CME Group, made on the basis of contracts future on Fed funds. All this reinforces fears of recession. FedEx Earnings Warning, which plunged 22% in New York, also illustrates the deterioration in the economy. The express delivery giant dropped its annual forecast and announced cost-cutting measures, including hiring freezes and aircraft grounding.
The Old Continent is not immune to inflation. It was confirmed at 9.1% year-on-year in August during the second estimate, up from the 8.9% observed in July. ” Energy and food prices contributed the largest share to this headline figure, despite a further slowdown in energy prices from their peak in Junedeciphers Tomas Dvorak, senior economist at Oxford Economics. However, inflationary pressures continue to be broad-based, with the pass-through from commodity prices strengthening. ยป
Virbac and Vetoquinol in turmoil
On the value front, Virbac and Vetoquinol collapsed by 10.29% and 17.94% respectively. The market is questioning the ability of the two veterinary laboratories to push through further price increases.
Also down, GTT lost 3.31%. Engie sold approximately 6% of the capital of the specialist in membranes intended for the transport of liquefied natural gas (LNG) via a placement with institutional investors at a price of 115.50 euros per share. Conversely, Gecina took 2.55% after JPMorgan raised its recommendation on the property from “neutral” to “overweight” and raised its target price from 11.80 to 13.20 euros. Finally, Agricultural credit dropped 2.81%. Societe Generale has degraded the title of the green bank from “purchase” to “keep” and reduced its price target from 12 euros to 10.20 euros.
CP