(CercleFinance.com) – It’s a cold shower: US inflation figures take expectations on the wrong foot and CAC40 goes from 6,394 to 6,286 in 1/2 hour (+1% to -0.7 %).
This correction puts an end to a series of five bullish sessions, the same scenario for the Euro-Stoxx50 which fell 1% to 3,610, the DAX yielded -1% versus +1.1% at 2:28 PM.
The consumer price indicator in the United States (CPI) for August rose +0.1% instead of -0.1 to -0.2% expected.
The Department of Labor reveals that the US consumer price index in August stood at 8.3% compared to the same month last year, an annual rate lower than the 8.5% of the previous month, but Jefferies anticipated a drop to 8%, due to fuel. prices on US soil.
Excluding energy (+23.8%) and food products (+11.4%), two traditionally volatile categories, the annual inflation rate stood at 6.3% last month, a level again above 6 % anticipated by Jefferies and most brokers such as Goldman Sachs. .
Sequentially, that is, between July and August 2022, US consumer prices increased by 0.1% in raw data and 0.6% excluding energy and food: this negates the hope that the peak has been surpassed inflation in July.
“If core inflation were to rise, this would reverse a three-month series of declines and put a little more pressure on the Fed to toughen its tone at its meeting on September 19,” warns La Financière de l’Chessboard.
This morning, the markets had reacted positively to the ZEW index under the ‘bad news = good news’ principle: the ZEW economic climate barometer for Germany fell 6.6 points to -61.9 in September, while that of the economic situation fell quite sharply by 12.9 points to currently stand at -60.5.
“The prospect of winter power shortages has made expectations even more negative for much of German industry. In addition, growth in China is evaluated less favourably”, explains Achim Wambach, president of the ZEW institute.
For the euro area as a whole, financial market pundits’ sentiment on economic development fell 5.8 points to -60.7 and that of the current situation plunged further, from 16.9 points to – 58.9. fears about European growth.
The New York Stock Exchange is expected to fall sharply (-1.4% for the Dow Jones, -2% for the S&P500) with -2.5% for the Nasdaq more sensitive to interest rate pressures while the Yield on ten-year Treasury bonds recovers 8 basis points, to 3.442%, flirting with the worst levels in mid-June.
The ‘2-year’ soars +14Pts beyond 3.70%, the ‘1-year’ almost +20Pts to 3.86%, a broken annual record.
The German Bund contracts +9Pts to 1.735% (compared to 1.75% the day before yesterday), our OAT shows +8Pts to 2.295%.
The dollar rose strongly (+1.2%), going from 1.0140 against the euro to 1.0010.
Oil prices continue their yo-yo movement after rising sharply yesterday on rumors of a possible European embargo on Russian oil products. Brent crude fell 1% to $93.2 and light crude fell -1.2% to $87.1.
On the equity side, Bouygues Travaux Publics expands its offer of infrastructure solutions for offshore wind energy, with the exclusive acquisition of OO-STAR floating base technology, owned by Floating Wind Solutions. This technology makes it possible to adapt to a large number of marine environments, reduce the carbon footprint of wind farm infrastructure and reduce operation and maintenance costs.
Aveva is close to reaching a deal with Schneider according to Sky News. Schneider could take over Aveva based on a £9bn valuation.
According to Sky News, the two groups would discuss buying 40% of Aveva, which Schneider does not yet own, based on a price of more than £30 per share. Schneider already owns 60% of the capital. This amount would value the 40% purchase price at around £3.5bn. This agreement should be concluded before September 21 according to banking sources interviewed by Sky News.
Air Liquide announces the sale of its industrial business in Saudi Arabia to Abdullah Hashim Industrial Gases & Equipment, an Air Products joint venture for its industrial business in Saudi Arabia. This sale is insignificant for the entire reach of Air Liquide in the area of Africa, the Middle East and India.
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