The Paris Bourse fell for the fourth session in a row as the publication of inflation figures in the United States approached. The statistic could have an impact on the Fed’s monetary policy decision scheduled for next Wednesday. At the European level, the 19 Stoxx 600 sector indices are in the red, starting with that of the banks, which dropped 2.5%. Agricultural credit notably lost 4.1% and BNP Paribas 3.1%.
Mid-session, the Bedroom 40 fell by 1.48% to 6,264.60 points in a business volume of 940 million euros. The contracts future on American indices evolve between a decline of 0.2% for the Dow Jones and a gain of 0.2% for the Nasdaq 100.
Widespread price hikes
Analysts are counting on a stabilization at 8.3% over one year of the rise in consumer prices in May across the Atlantic. Excluding food and energy, it slowed from 6.6% to 6.2% over one year in April and is expected at 5.9% in May. But recent data shows that inflation is largely entrenched and affecting all sectors. Moreover, while some investors may have hoped that the peak had been reached, the recent surge in oil prices to a high of more than 3 months has, to say the least, tempered this optimism. Either way, the market expects the Federal Reserve to announce a 50 basis point hike in the Fed funds rate next Wednesday.
On the Old Continent, the European Central Bank announced on Thursday the end of its asset purchase program at the end of the month and the raising of its main key rates by a quarter of a point in July, the first in addition 10 years old. The ECB has also significantly raised its inflation forecasts, which points to an upcoming tightening, potentially more marked, in September. It has also significantly lowered its growth forecast for this year.
The “hawkish” attitude adopted by the ECB, which comes after the Bank of Australia raised rates by half a point on Tuesday, ” reminds us that inflation comes before growth in the monetary decisions of central banks, reports Emmanuel Cau, strategist at Barclays. At the same time, the rise in oil prices continues, the barrel of Brent from the North Sea gaining 0.6% to 123.85 dollars after a jump of more than 50% since the beginning of the year.