The Parisian market was down slightly (-0.34%) on Friday at the start of a poor session in indicators which concludes a week where investors were taken by uncertainty about future monetary tightening by central banks.
The Paris Stock Exchange lost 22.11 points to 6,535.29 points around 10:10 a.m., the evolution of the day having been done to tip the weekly balance sheet into negative (-0.28%), after six consecutive weeks of increase.
If the day before, the Parisian place had ended up (+0.45%), supported by encouraging macroeconomic indicators in the United States, already on Wednesday, the session had trimmed all the gains from the start of the week, before the publication of the minutes of the last Fed meeting, at the end of July, during which the Institution raised its rates by 75 basis points.
Market participants are beginning to realize that the policy of the US central bank (Fed) will not change immediately with each new economic impulse, estimates Andreas Lipkow, analyst at Comdirect.
In an interview published Thursday by the Wall Street Journal, the president of the antenna of the Fed St. Louis (Missouri), James Bullard, known for his tough stance on monetary policy, said he was in favor of a further increase in 0.75 percentage point of the key rate at the next meeting in September.
Several other members of the Fed have indicated their favorable position on the continuation of a rise in key rates, at various levels.
However, in the eyes of Michael Hewson at CMC Markets, it was Minneapolis Fed President Neel Kashkari’s comment that was most telling. While Mr. Kashkari is less inclined, according to Mr. Hewson, to advocate big hikes, he insisted that the Fed needs to do more against inflation urgently, even at the cost of slowing the economy and risk triggering a recession.
On the European side, European Central Bank executive board member Isabel Schnabel said inflation in the euro zone has not improved since the ECB raised rates in July and that she favors of a large increase next month, even if the risks of recession increase, underlines Ipek Ozkardeskaya, analyst of Swissquote.
On Friday, Germany announced a 37.2% rise in production prices in July over one year, the largest increase since 1949, according to the Federal Statistics Office. Over one month, prices rose by 5.3%.
In the United Kingdom, retail sales rebounded slightly in July, driven in particular by online sales, but the long-term trend remains downward as inflation weighs on the British budget.
Alstom balanced on track
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The SNCF has placed an order with the railway manufacturer Alstom for 15 additional new generation TGVs, in addition to the 100 units already purchased four years ago, to respond to the growth in traffic and to launch trains abroad. In green at the opening, the title of Alstom fell by 0.07% around 10:15 a.m., 22.23 euros.
Valneva loses hope
The Franco-Austrian biotechnology laboratory announced Thursday that it had begun submitting its chikungunya vaccine candidate to the American health authorities (FDA), in a press release. First up in the first exchanges, its title fell by 0.12% to 9.78 euros around 10:15 a.m.
Sodexo pnalis by Jefferies
The title of the French collective catering giant Sodexo lost 1.40% to 81.10 euros around 10:15 a.m., after the Jefferies agency downgraded its rating to buy and keep, Bloomberg reported.