The Paris Stock Exchange rebounded on Tuesday, erasing part of its losses from the two previous sessions. Cheap purchases, yes, but without real conviction, given the current low volume of trade, around 500 million euros on the values of the flagship index.
At the end of the morning, the Cac 40 gains 1%, to 6,283.91 points, banking stocks in the lead, BNP Paribas, Societe Generale and Agricultural credit growing by at least 1.9%. Industrial Schneider-Electric, Great and Renault are also among the biggest increases this morning. Conversely, Crossroadsthe red lantern, lost 2.2% after a deterioration of JPMorgan, which went from “outperformance” to “neutral”.
Rebound in sight on Wall Street
If Wall Street did try to rebound on Monday in the middle of the day, the place faltered at the end (-0.57% at the close for the Dow Jones-1.02% for the Nasdaq Composite). But the future contracts seem this time to point to the green in the perspective of an expected opening up 0.6% to 1% depending on the indices.
The main meeting of the day is set at 2 p.m. for the publication of inflation figures in Germany, the largest economy in the euro zone. It accounts for more than 30% of the region’s gross domestic product. While the latest consumer price figures have given the impression of wanting to stabilize across the Atlantic, down slightly over one year for the month of July, this is not the case across the Rhine, where inflation peaked at 8.5%, again over one year and in harmonized European data, beyond the 8.2% of June and above all the 8.1% which were anticipated by analysts. No respite is expected on Tuesday, since the consensus expects a surge to 8.8% for the month that is ending. The massive purchases of natural gas by the country since the beginning of August in order to fill the tanks in anticipation of the winter, should not have helped matters.
Trompe l’oeil stability in Spain
In question, therefore, the surge in energy prices (+35.7% in July according to Destatis) but also in food (+14.8%), which weigh on the growth and profitability of companies while such as household consumption. Last month, activity in Germany’s services sector fell into contraction for the first time in six months as rising prices and gas supply fears nipped in the bud the recovery that followed the improvement of the health crisis. An even worse figure on Tuesday would certainly fuel speculation about a sharp 75 basis point hike in key rates at the September 8 meeting of the European Central Bank. At the risk of precipitating an entry into recession in the euro zone.
The figures have already been published for Spain in the early morning. In August, inflation came out in line with expectations, at 10.3% year on year, slightly down from 10.7% in July, but consumer prices rose by 6.4% excluding volatile elements , beyond the 6.1% of the previous month. Apart from German inflation, August consumer confidence is expected this afternoon in the United States, according to the Conference Board, as well as two real estate indicators of house prices for the month of June, the FHFA and CaseShiller indices. .