(News Bulletin 247) – The CAC 40 gained more than 0.8% while the euro zone currency took off against the dollar.
It was the most anticipated release of the day: US inflation figures for June. And, to the delight of “bull” investors, that is to say those betting on a rise in the markets, they came out below expectations.
The overall inflation figure stands at 3% over one year while that of “core” inflation, i.e. excluding food and energy prices, stands at 4, 8%, according to data from the Bureau of Statistics and Labor. Economists polled by the Wall Street Journal, expected a figure of 3.1% over one year and 5% for the “core” index.
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The euro takes off against the dollar
Following this publication, the CAC 40 consolidated its gains, gaining 0.83% around 2:50 p.m., against 0.7% just before these statistics published at 2:30 p.m. The index even peaked at 1.1% in the wake of these figures.
Especially the euro increases its gains, or more precisely, the dollar unscrews. The currency of the euro zone takes 0.45% against the greenback at 1.1059 dollars while it was close to stability before these indicators.
“This is the lowest number since the pandemic, and it is certainly good news for the economy, but it is important to keep in mind that this is still a transitional situation. Overall, market operators are happy with this event,” said Naeem Aslam of Zaye Capital.
“The moderate rise of 0.2% over one month in ‘core’ consumer prices in June will not prevent the Fed from raising its rates again during the course of the month, but it will supports our view that the downward trend in core inflation should accelerate in the second half of the year,” Capital Economics said.
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