(News Bulletin 247) – The Paris Bourse appreciates good news. The CAC 40 resumed 7400 points Thursday evening at the close, in reaction to inflation figures lower than feared in the United States in July.

The rebound of the day is the height of the relief of investors after the publication of inflation figures in the United States for the month of July. The CAC 40 ended up sharply by 1.52% to close at 7433.62 points after a high of the day at 7464.79 points (+1.94%). Finally, the most awaited publication of the day and even of the week, in this summer break on the markets, gave complete satisfaction.

In July, US consumer prices increased by 3.2% over one year, after 3% in June. An acceleration that left the market unmoved, since economists polled by the Wall Street Journal were expecting a figure of 3.3% over one year. Over one month, inflation was stable at 0.2% in line with expectations.

Core inflation, that is to say excluding food and energy prices, is also in line with the market consensus at 4.7%, according to data from the statistics and labor office. And it is above all less than the 4.8% for the month of June.

“The dynamics of disinflation are changing in nature: it is mainly energy that brought down inflation in the first half of the year, but it is underlying inflation (housing and to a lesser extent transport ) which will fall in the second half of the year. Headline inflation could experience a period of relative stability around current levels, with the decline in underlying inflation counteracting clearly favorable ‘price at the pump’ base effects”, suggests Bastien Drut, Head of Studies and Strategy at CPR AM.

As soon as the statistics were released, the probability of a pause in Fed rate hikes in September rose another notch to 90.5% against already 84.5% just before the publication of the inflation figures. , according to the CME Fed Watch tool. For its part, the greenback is losing ground, since the European currency is currently trading at 1.1017 dollar (+0.37%) after a peak at +0.75% in reaction to these data relating to American prices.

TotalEnergies and luxury in shape

The rebound of the CAC 40 was also fueled by the good orientation of the luxury sector after China’s decision to lift the ban on group travel in more than 70 countries, including the United States. Hermès and LVMH gained more than 3% while Kering appreciated 2.2% at the close Thursday evening.

TotalEnergies (+1.3%) also contributed to the rise of the Parisian market, in the wake of the recent rise in oil prices. Brent is still over $87 a barrel, the highest since January.

Excluding the star index, Remy Cointreau rose by 4.35%, benefiting from the support of Exane BNP Paribas which raised its recommendation to overweight, against neutral on the title of the French specialist in spirits.