The Paris Stock Exchange closes lower, but far from its lows for the day, US inflation seems to have peaked, Market News

The Paris Stock Exchange, with sharp falls this morning, erased most of its losses thanks to the publication, at the beginning of the afternoon, of the consumer price index for USA which shows a surprising slowdown in inflation, excluding volatile elements, in March. Consumer prices rose 1.2% in a month, as expected, and 8.5% in a year, versus 8.4% expected. In “basic” data (excluding food and energy) the rise stands at 0.3%, compared to 0.5% in February and an estimated 0.5%. In the fixed income market, the return on the 10-year US bond moderated, at the close of the European stock indices, 7 basis points to just under 2.71%, after having reached 2.83% this morning. for the first time since the end of 2018.

As Wall Street recovers from yesterday’s pullback, the 40who had escaped the red wave the day before, investors say they are relieved by Emmanuel Macron’s leadership after the first round of elections The French presidential elections ended today with a fall of 0.28%, to 6,537.41 points, far from its minimum of the day (-2%, to 6,424.97 points).

“The big news from the March stat is that underlying price pressures finally appear to be easing.noted Andrew Hunter of Capital Economics, for whom the March price increase will peak. » However, he adds that these figures should not change the plans of the fed raise interest rates in tranches of 50 basis points, but “They reinforce our sense that having been slow to realize that the initial rise in prices was not transitory, Fed officials are now too pessimistic about how quickly it will come down. »

hammer blow to the economy

The recent rise in inflation has pushed the more dovish members of the Fed’s monetary policy committee (FOMC) to believe that it was necessary to act quickly and decisively to counter the price increase. Considered for a long time as one of the most “docile” within the FOMC, Charles Evans, president of the Chicago Fed, considered that an acceleration of the pace of rate hikes to combat inflation should be discussed.

Meanwhile, Fed Governor Christopher Waller said the central bank is doing everything it can to prevent monetary tightening from stifling growth. In fact, he described rate hikes as a tool to “brute force” can have the effect of ” hammer “ by causing ” Collateral damage “ on the economy For now, the market anticipates 50 basis point increases in the fed funds rate during the next two meetings of the Fed’s monetary policy committee.

According to the latest monthly survey of fund managers from Bank of America Securities, investor optimism about global economic growth is at an all-time low, while fears of high inflation combined with stagnant activity have never been this high since August 2008.

Beginning of the easing of confinement at Carry off

This Tuesday, the prices of Petroleum rise again, the price of Brent rising 7% to $105 a barrel on allegations that Russian forces used chemical weapons against the besieged city of Mariupol and also buoyed by the decision of the Porcelainyesterday, to ease the confinement in certain districts of the city of Shanghai.

On this latest information, the shares of luxury companies LVMH Y Hermes it will end in Cac 40. LVMH will publish, just after the close of the Stock Exchange, its first quarter turnover.

The other way, General Partnershipwanted yesterday after the bank’s decision to withdraw from Russia, closed this Tuesday with a fall of almost 2%. The European banking sector was under pressure today in general in the stock market, german bank Y Commerzbank closing on falls of more than 8%. Mystery investor sold tens of millions of shares representing a participation of more than 5% of the capital of the two German banks for a total amount estimated at 1,750 million euros.

Greater fall in the Cac 40, Sanofi (-2.8%) suffered profit-taking after yesterday’s all-time high.

the tester scientific eurofins also finished at the bottom of the table while, in the same sector, biomérieux lost almost 6% in reaction to the publication of a quarterly turnover of 837 million euros “in organic decline of 4.5%, we see within the financial analysis firm Midcap Partners, slightly below consensus expectations (840.5 million) on a stringent comparison basis (+16.5%)”unsurprisingly, it reflects the impact of slowing demand for Covid tests.

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