The Paris Stock Exchange erased its initial gains after the announcement of a less marked than expected slowdown in consumer prices in the United States. The latter increased by 0.1% in August and by 8.3% over one year, against respectively -0.1% and +8.1% expected by analysts. Excluding food and energy, prices rose by 0.6% over one month and by 6.3% compared to August 2021, thus marking an acceleration compared to the 5.9% increase recorded in July. Nevertheless, this is the second consecutive slowdown in the rise in prices in global data since the peak of almost 40 years reached in June at 9.1%.
Shortly after 2:30 p.m., the Bedroom 40 lost 0.14% to 6,326.51 points in a limited volume of business with 1.2 billion euros traded. The contracts future on American indices lost between 1.1% and 2.2%.
What about the attitude of the Fed?
The statistic is, along with the producer price index (expected Wednesday), one of the last concerning inflation before the monetary decision of the Fed on September 21. The question of the magnitude of the next rate hike, 50 or 75 basis points, is no longer debated. According to the CME Group’s Fedwatch tool based on Fed funds futures contracts, the market assesses the probability of a 75 basis point hike in interest rates next week at 88%. That of a rerement of 100 basis points is also estimated at 12% whereas it was not envisaged yesterday.
Engie and Euroapi fly over the coast
Engie advance of 3.1%. The European Union is considering proposing a tax exceptional and temporary on oil and gas companies, as well as those operating in refining and coal, reports Bloomberg. Engie, which is only an energy distributor, is therefore not affected by this measure.
Biggest rise in SRD, Euroapi rose 3.5%, supported by a note from Deutsche Bank, which raised its target price from 20 to 22 euros while maintaining its recommendation to “buy”.
Eurofins Scientific rises 1.2%. Societe Generale raised its recommendation on the title of the bio-analysis laboratory from “sell” to “keep” and raised its price target from 72.20 to 73.30 euros.
The same intermediary increased its target price from 127.20 to 139 euros on Ipsen, maintaining its opinion at “buy”. The title of the pharmaceutical group reaps 3.1%.