(News Bulletin 247) – The CAC 40 stalled in mid-session, while the market is worried about the persistence of inflation. Backed by a recommendation upgrade, Worldline stands out.

The Paris Stock Exchange is on its guard. At mid-session, the CAC 40 is close to equilibrium, at 7,293.43 points, struggling to extend its rise of 1.5% the day before.

The market is worried about the persistence of inflation on both sides of the Atlantic. In the United States, the rise of the PCE index, the preferred indicator of the Federal Reserve (Fed) to measure inflation, on Friday, surprised the market.

The intentions of the ECB in question

In Europe, inflation in France is on the rise again, according to figures published on Tuesday by INSEE. The harmonized consumer price index increased by 7.2% over one year in February against 7% in January. Inflation in Germany, Wednesday, then in the euro zone, Thursday, will soon be published.

These figures may give food for thought to the European Central Bank (ECB) to extend the horizon of its rate hikes.

“We already know that the ECB intends to hike by 50 basis points (0.5%) in March, since it has already committed to it on several occasions, but what will follow remains surrounded by ‘uncertainty,’ said Michael Hewson of CMC Markets.

Faced with fears of persistent inflation, bond rates are rising in the euro zone, with the yield on the German 10-year debt securities moving to 2.645% against 2.580% on Monday.

Worldline, growth at a good price

In terms of values, Worldline stands out, gaining 2.8% thanks to Morgan Stanley. The American bank raised its advice to “overweight” against “online weighting” judging that the specialist offers a “GARP [growth at reasonable price] story”, i.e. prospects for sustained growth at an attractive price. It also sees the group continuing to outperform the growth of its Italian competitor Nexi.

Casino is suffering, falling 5.2% after reporting deleterious sales in France in the fourth quarter, particularly in its supermarkets.

On the other markets, the euro is stable against the dollar, at 1.0616 dollars. Oil is gaining ground. The contract for delivery in May on Brent from the North Sea advances by 1.45% to 83.22 dollars a barrel while that on WTI listed in New York takes 1.7% to 76.94 dollars a barrel.