(BFM Bourse) – With an increase of 0.14% on Friday, the Paris Stock Exchange recorded a sixth week of growth in a row (+1.26%). US consumer confidence came out better than expected and closes a series of indicators deemed reassuring on inflation in the United States.
The Paris Stock Exchange closed this last session of the week on a small increase of 0.14% to 6,553.86 points. Only animation of the day, the preliminary index of the University of Michigan measuring consumer confidence which in the end, recovered more than expected in August in the United States.
On a weekly basis, the CAC 40 rose by 1.26%, marking its sixth consecutive week of growth. A good performance while the month of August, which constitutes a trough of activity on the markets, is traditionally not very buoyant on the stock market. This pass of six has another virtue, that of reducing the annual losses of the CAC 40 to 8.3% where they still peaked at 18% at the end of June.
A better-than-expected improvement in US consumer sentiment closes a series of indicators deemed reassuring on inflation in the United States. The statistic of the day shows a marked improvement in the morale of American households in August to 55.1 points, due to the prospects for improvement on the inflation front, in particular among low- and middle-income consumers for whom the inflation is particularly important. A clearing which contrasts with the statistics for the month of June which had then reached its historic low.
The lull observed in prices in the United States also fueled hopes of less aggressive monetary tightening than expected from the Fed. The market is now betting on a half-percentage-point hike after the Federal Reserve’s next meeting in September. However, several officials of the institution have warned that we should “not declare victory too quickly on inflation” which remains at a high level.
On this eve of a long weekend – except for the Paris market on August 15, which is not idle on the Paris Stock Exchange – business news was more than sparse.
Sanofi closes a nightmarish week with a gain of 0.84%. The pharmaceutical laboratory has lost more than 10% in recent sessions after the interruption of trials on its drug tolebrutinib against multiple sclerosis and a note from UBS no longer recommending the purchase of the stock. The Swiss bank no longer detects catalysts for the action until the end of the year.
TF1 returned 3.2% after a downgrade by Barclays, which went underweight the title.
Innelec ends up 1.4%, the entertainment specialist begins its new 2022-2023 financial year with a 12% increase in sales to nearly 25 million euros.
As for other assets, the single European currency is widening its losses to 1.0255 dollars, the energy crisis in Europe could tip the euro zone into recession. On the oil side, WTI lost 1.6% to 92.50 dollars and Brent lost 1.4% to 98.05 dollars.
Sabrina Sadgui – ©2022 BFM Bourse