Little surprise on reading the most important figures of the day, those of inflation in Germany in preliminary data for August. For the month that is ending, consumer prices rose by 8.8% year on year in harmonized data from the European Union. This is 0.3 point more than July’s inflation, but the data is perfectly in line with consensus expectations. The small downside comes from the non-harmonised figures, with a 7.9% rise in prices over one year, or 0.1 point more than expectations. But over one month, they increased by 0.3%, against a consensus of +0.4%.
The statistic was released early in the morning in Spain. In August, inflation also came out in line with expectations, at 10.3% over one year, down 0.3 points from July’s 10.7%, but consumer prices increased by 6.4% excluding volatile elements, above the 6.1% of the previous month.
Leading banks
On the fait accompli, the Paris Stock Exchange therefore remains in its bullish orientation of the morning, in the perspective of a rebound in New York, after a fall of almost nearly 4% in two sessions, linked to the offensive speech of the Fed Chairman Jerome Powell at the Jackson Hole Symposium.
Around 2:30 p.m., the Bedroom 40 advance of 0.78%, to 6,267.50 points, in a trading volume, low, of the order of 900 million euros, banking stocks in the lead. BNP Paribas, Societe Generale and Agricultural credit gain from 2.7% to 3.4%. Large industrialists like Alstom, Saint Gobain, Great and Schneider-Electric are also among the highest increases of the day. Conversely, Crossroadsthe bottom of the index, lost 2.3% after a deterioration of JPMorgan, which went from “outperformance” to “neutral”.
“The summer recovery was short-lived”
On Wall Street, the indices point to a rebound, albeit timid, from 0.4% to 0.67% depending on the indices. A lot of caution though.
” Investors have now accepted the idea that the Fed wants to rein in inflation hard, even though recent data suggests that it is starting to fallsaid Rod von Lipsey, managing director of UBS Private Wealth Management. We believe the market’s summer rally was short-lived and continue to advise investors to remain selective and focus on defensive sectors like healthcare and dividend-paying stocks. “.