The Cac 40 starts on the rise, Veolia driven by the sale of Suez’s waste activities


The Paris Stock Exchange nibbles a little ground this Monday morning, while the agenda of the day is rather sparse. Nothing special to report in the United States while in the euro zone, we will have to content ourselves with the Sentix index measuring investor sentiment in August. It could improve slightly but would still remain in negative territory at -19.9 points, against -26.4 in July.

In the first exchanges, the Cac 40 gained 0.59%, to 6,510.45 points.

What to prepare for the big meeting of this week, scheduled for Wednesday in the United States. In fact, we expect the publication of consumer prices for the month of July. A leading data for the Fed in the evolution of its monetary policy, while the latest employment figures, published on Friday, clearly show that inflation has entered the life of companies across the Atlantic. Last month, the average hourly wage rose more than analysts expected, so much so that it is now up 5.2% year on year, above the 4.9% consensus expectation. .

The US economy is far from being in recession. In July, the country created more than 500,000 jobs in the non-agricultural sector, twice as many as expected, for an unemployment rate down 0.1 point, to 3.5% of the active population, a plus low since the end of the 1960s. Enough to revive the hawks of the central bank, a new increase of 0.75 point in key rates is now on the table for the next FOMC meeting in September.

“It’s all about the Fed”

Friday, the American places finished a little groggy, the Dow Jones progressing symbolically by 0.23% when the Nasdaq Composite yielded 0.50%. ” It’s all about the Fed. Such a report puts pressure on the central bank to tighten rates for longer “, estimated Adam Sarhan, managing director of 50 Park Investments… and perhaps more strongly. The latest comments from members of the Fed argue, moreover, in this direction. This weekend, Michelle Bowman, of the Board of Governors, thus warned that we should expect sharp rate hikes at the institution’s next meetings, in order to curb a surge in prices which does not give no sign of appeasement. ” Similar size increases [75 points de base] should be considered until we see inflation come down consistently, significantly and sustainably “, she said.

This Wednesday, it is still expected a slight decline in inflation. In July, it should have fallen from 9.1% to 8.7% over one year. However, this would only be due to the weakening of energy prices, down 15% over the month. For the time being, and before the publication of these figures, the market is ‘pricing’ at 70% an upcoming 75 basis point hike in key rates.

On the business side, it’s rather dead calm during this summer break. Veolia Environnement sold Suez’s UK waste business to the Australian Macquarie for 2.4 billion euros. The action gained 3%, leading the Cac 40.




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