After two consecutive declines, the Paris Bourse is picking up some color in the wake of the rise of Wall Street, which on Tuesday experienced its worst session in more than two years. The underlying sentiment also benefited from the announcement of the lifting of containment measures on Thursday in Chengdu, one of China’s main cities. The central question, however, remains the extent of the next rate hike by the US Federal Reserve: 75 or 100 basis points.
Shortly after 9:30 a.m., the Bedroom 40 grabbed 0.11% to 6,229.29 points in a business volume of around 200 million euros.
After inflation figures that show no signs of easing, investors will be looking this afternoon at the statistics for retail sales in the United States in August. It could give a broader view of the impact of soaring prices on consumption, before tomorrow’s survey by the University of Michigan on consumer confidence.
The consumer resists
The resilience of the American consumer in this period of declining disposable income has not been denied this year despite the increase in energy and food prices. Retail sales rose every month except for a 0.1% decline in May and stagnation in July. The consensus formed by Bloomberg expects a contraction of 0.1% in retail sales as a whole and a stabilization excluding autos.
The Federal Reserve will not fail to analyze these figures to refine its monetary decision next Wednesday. The vast majority of economists are counting on a rise of 75 basis points, which would bring the Fed funds rate to 3%-3.25%. The probability of a tightening of one percentage point is estimated at 30% by the market, according to calculations by CME Group.
Carmat is preparing to resume implantations
On the bond market, the yield on the US 2-year bond, sensitive to expectations on the evolution of short-term rates, reached 3.79% this week, or 35 basis points above that of the maturity at 30 years. The inversion of the curve is thus at its highest level since the beginning of the 2000s. This type of reversal is generally considered to be a harbinger of an upcoming recession.
Carmat jumped 9.6%. The group has confirmed that it is preparing to resume the implantations of its Aeson artificial heart in October, subject to obtaining the necessary authorizations.
Societe Generale appreciated by 1.9%, Morgan Stanley raised its price target from 32 to 34 euros while maintaining its opinion of “outperformance”.
Among other analyst notes, Berenberg improved its target price on Accor from 32 to 34 euros. The title of the hotel group gained 2.3%. Credit Suisse has raised its recommendation on nokia (+0.5%) from “neutral” to “outperformance” and raised its target price from 5.45 to 6.31 euros.