(News Bulletin 247) – The CAC 40 is almost stable this Friday at mid-session, awaiting the publication of the PCE index for inflation in the United States.
The Paris Stock Exchange is heading for a very pronounced decline for the whole week. At mid-session, the CAC 40 certainly takes 0.06% to 7,233.53 points, but it shows a weekly decline to 3.4%.
Investors are on their toes this Friday ahead of the release of the PCE index, the US Federal Reserve’s (Fed) preferred gauge for measuring inflation. According to a consensus of the Wall Street Journal, economists expect a “core” figure – excluding food and energy prices – up 4.6% over one year.
This indicator should fuel investor speculation regarding the Fed’s upcoming policy rate decisions.
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Casino again in the hard
“While the market was expecting 100 basis points a short time ago [1%, NDLR] reduction in key rates by the end of 2023, he anticipates less than half of this today and above all a possible increase is now being considered at the next meeting of the monetary policy committee. We are still counting on a break, with an upside risk, but above all we maintain our view that there will be no rate cut in 2023, unless there is an accident”, underlines Sebastian Paris Horvitz, of La Banque Postale. Asset Management.
And, of course, investors continue to follow the American telenovela about raising the debt ceiling. The “I love you me neither” continues between Democrats and Republicans without however any significant progress. However, the president, Joe Biden, assured that there would be no default. The spokesperson for the American executive, Karine Jean-Pierre, spoke of “productive negotiations”. Still, the date of June 1, put forward by the US Treasury as a deadline for default, is fast approaching.
“Let us be clear: the United States will not go bankrupt!” Judge John Plassard de Mirabaud, who however perceives a “stress” currently.
On values, Casino falls again after announcing the opening by the Paris Commercial Court of a conciliation procedure to renegotiate its debt as well as the sale of stores in three waves with the Les Mousquetaires group.
Atos takes 4.6% driven by a favorable court decision in the United States concerning an old dispute between its subsidiary Syntel and a subsidiary of the American group Cognizant.
Faurecia and Valeo rose 3.3% and 1.8% respectively, both benefiting from an increase in buying from Jefferies, which was previously “underperforming” on both stocks.
As for the smallest caps, Inventiva rose 5.6% after announcing that its Chinese partner had obtained the necessary authorizations for clinical development in China against “the soda disease”.
On other markets, the euro gained 0.06% against the dollar at 1.0734 dollars. Oil prices are moving up slightly. The contract on Brent from the North Sea for delivery in July goes up 0.5% to 76.64 dollars a barrel while that on WTI listed in New York for the same expiry takes 0.8% to 72.43 dollars. the barrel.
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