(News Bulletin 247) – The CAC 40 ended slightly lower on Wednesday. The market struggled to find direction in the face of weaker but stronger than expected German inflation and disappointing US jobs data seen as good news.
The market had to contend with opposing forces during this Wednesday session. The CAC 40 finally closed down slightly by 0.12% at 7364.40 points.
On the tail side, inflation in Germany certainly slowed in August, rising to 6.1% over one year against 6.2% in July. But economists expected a weaker figure and this relative resilience of inflation is not great news for the European Central Bank (ECB).
“As this is the latest inflation estimate ahead of the ECB’s September meeting, it could be enough to tip the scales in favor of another 25 basis points (0.25% ), even if the decision looks tight”, anticipates Capital Economics.
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A disappointing, therefore positive ADP report
On the face side, the ADP report on American employment reported 177,000 job creations in August against 200,000 expected by economists.
This is a sign of relaxation of the US labor market, and could facilitate the task of the Federal Reserve (Fed). Because an overheated labor market is synonymous with inflationary risk for it.
It will however be necessary that the trend painted by the figures of the firm ADP be confirmed by the official data of the American Department of Labor which will be published Friday afternoon.
In addition, the US gross domestic product (GDP) was revised to 2.1% on an annual basis in the second quarter against 2.4% during an initial estimate.
As for values, Airbus stood out a little, signing the second rise in the CAC 40 with an increase of 1%, supported by Stifel, which resumed its coverage with advice on buying.
Especially the values which have a strong exposure in Gabon plunged, following the attempted coup d’etat in the country. This is the case for the oil group Maurel & Prom (-14.8%) and the mining company Eramet (-16.5%).
On the other markets, the euro rose 0.50% against the dollar to 1.0936 dollars. Oil prices are changing little. The North Sea Brent crude contract for October delivery is up 0.1% at $85 a barrel. That of the same maturity on the WTI listed in New York rose 0.2% to 81.30 dollars a barrel.
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