Stale for most of the morning, the Paris Stock Exchange now seems to want to register in the red, weighted by the first exchanges expected to be slightly down in New York. This is a new alert in the semiconductor sector which weighs on the trend. After Nvidia yesterday, the component manufacturer Micron said its revenue for the quarter could be lower than expected due to a less favorable economic environment and difficulties in the supply chain. The action lost more than 4% before the market. Monday, Nvidia had sold nearly 3% after having alerted, too, on its sales forecasts, and should extend its decline on Tuesday. Bad sector news that also weighs down Infineon in Germany (-4%, biggest drop in the Dax), and STMicroelectronics in Paris (-3.2%).
Around 2:30 p.m., the Bedroom 40 yields 0.42%, to 6,498.65 points. On Wall Street, index futures contracts drop between 0.2% and 0.8% (for the Nasdaq).
In the background, also, the lack of initiative of operators on the eve of the very crucial inflation statistics for the month of July in the United States. It is more precisely at 2:30 p.m. that the latest figures for consumer prices in the United States will be presented, for which it is hoped for a slight decline, with inflation which would fall from 9.1% to 8.7% over one year. compared to June. A level that would remain high anyway, especially since it would be partly explained by a decline of more than 10% in energy prices.
50…75…100 basis points?
Whatever the case may be, the statistic will influence the behavior of the Fed in its degree of aggressiveness in raising its key rates in September. Since Friday, and the announcement of the creation of more than 500,000 jobs in July in the United States, i.e. twice as many as expected, investors have readjusted their expectations and are once again counting on an increase of 75 basis points (against 50 basis points just before the publication of the statistic). Citi economists are not ruling out a 100 basis point hike, which would take the Fed’s main policy rate to a range of 3.25-3.5%, when it was still at 0% in march.
” The next 30 hours may be the calm before the storm “, wrote, this morning, Jim Reid, strategist at Deutsche Bank. And he recalls that yesterday, however, ” there was good news on the inflation front, to be found in the results of the New York Fed’s survey of consumer price expectations. ” Their inflation expectations were down at the one-year, three-year and five-year horizons. That’s sweet music to the Fed’s ears, because if this trend continues, it means the Fed might not have to be as aggressive in raising rates, because one of its big fears is that expectations Higher inflation rates lead to a self-fulfilling prophecy of higher real inflation, as firms adjust prices and workers negotiate wages accordingly. »
UBS no longer buys Sanofi
On the value side, Sanofi loses 1.4% after the announcement of the cessation of recruitment for clinical trials of tolebrunitib, a treatment for multiple sclerosis. UBS has also downgraded the title of the laboratory from “purchase” to “neutral”.
TotalEnergies, on the other hand, increased by 2.2%, while deliveries of Russian oil to three European countries, Hungary, Slovakia and the Czech Republic were interrupted? The barrel of Brent almost returns to 98 dollars.
Apart from the flagship index, Valneva climbed 4%. The biotech and the American Pfizer, with which it is associated, have announced that they have launched a phase III clinical study on their experimental vaccine against Lyme disease, VLA15. Pfizer will pay Valneva a milestone payment of $25 million at the start of this Phase III study.