The Paris Stock Exchange in the red, led by tech ahead of US inflation

The Paris Stock Exchange ended down (-0.53%) on Tuesday after a summer session marked by reduced trading volumes, investors keeping an eye on US inflation expected on Wednesday.

The CAC 40 index lost 34.44 points to 6,490 points. He had finished the day before up 0.80% at the start of a week where market activity is limited. It should be noted, however, that the weakness of trading volumes tends to exacerbate the variations.

In New York, the indices were falling, pulled down by stocks in the technology sector.

US consumer price index (CPI) figures are expected on Wednesday by feverish investors who are trying to better predict the next key rate hikes from the US central bank, the Fed, which has been working since March to bring back the inflation under control.

Investors are confident that inflation in the United States may have peaked last month, according to SwissQuote analyst Ipek Ozkardeskaya, citing the New York Fed’s consumer expectations survey which showed a sharp drop in inflation forecasts in July.

The projections bet on a slowdown in the rise in prices in the United States +0.2% over the month (against +1.3% in June) and 8.7% over one year (against 9.1% last month ), which could finally suggest that inflation has peaked.

A figure in line with expectations, or ideally weaker, should calm expectations of Fed rate hikes, while a figure above expectations or above last month’s 9.1%, would cause a new wave of market shock, warns Ipek Ozkardeskaya.

The euro rose again against the dollar on Tuesday, which has lost momentum since the beginning of the week due to questions about the Fed’s future policy.

Technology penalizes

The tech sector fell on Tuesday, hurt by both disappointing results from US and Japanese semiconductor companies and rising sovereign borrowing rates.

The Franco-Italian manufacturer STMicroelectronics ended down 5.23% (35.45 euros per share), dragged down by its Japanese counterparts Tokyo Electron (-8.25% at the close) and the American Micron Technology ( -5.42%) which published disappointing results on Tuesday.

The French software giant Dassault Systmes ended down 1.50% to 41.98 euros and the IT infrastructure provider OVHcloud lost 2.82% to 15.15 euros.

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The yield on French 10-year debt ended at 1.463%, against 1.432% at the end of the session the day before. The German 10-year rate rose to 0.914% against 0.891% at the close on Monday. This trend penalized stocks in the technology sector, which need low interest rates to finance their growth.

Eutelsat radiates

In a context of decline for tech, the title of the French satellite operator Eutelsat remained in the green (+0.76%, 8.64 euros) while the shipping company CMA CGM declared having crossed on August 5, the threshold of 5% of the capital and voting rights and hold 5.03% of the company.

The car the train

The automotive sector also suffered from nervous markets on the eve of US inflation.

The French automotive supplier Michelin fell 3.46% during the session (26.83 euros per share), the car manufacturer Stellantis lost 2.50% (14.41 euros) and Renault 2.09% (29 ,53 euros).

source site-96