(News Bulletin 247) – The CAC 40 is falling at mid-session this Wednesday, while investors await the publication of American inflation at 2:30 p.m. The automotive sector stands out.
The markets are holding their breath and for the moment the Paris Stock Exchange is gloomy. The CAC 40 lost 0.93% to 7185.27 points after having already lost 0.35% the day before.
Investors are eagerly awaiting the publication of US inflation figures for the month of August at 2:30 p.m. According to a consensus gathered by the Wall Street Journaleconomists expect inflation to be 3.6% over one year and 4.3% for the “core” figure, that is to say excluding food and energy prices.
“The possibility of a further increase in interest rates by the Fed (the American Federal Reserve) next month is making traders very nervous, and it is in this context that today’s American inflation takes on a great importance”, underlines Naeem Aslam of Zaye Capital.
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Oil still higher
Rising oil prices may also weigh on risk appetite. This Wednesday the European International Agency warned that a significant shortage in the supply of black gold would be observed in the fourth quarter, due to the extension of production cuts by Saudi Arabia and Russia. Which is not a surprise since UBS, for example, had already identified this deficit, putting it at more than 1.5 million barrels per day over the period.
However, oil continues to rise. The November North Sea Brent contract rose 0.6% to $92.57 per barrel, reaching its highest level since November. The October contract on WTI listed in New York advanced 0.6% to 89.36 dollars per barrel.
On the stock side, the automobile sector is buoyed by the announcement of the European Union which has decided to investigate subsidies granted to Chinese automobile groups. Renault takes 2.1% and Forvia 1.8%.
Alstom for its part fell 4.6% while Barclays began monitoring the stock at “underweight”, the equivalent of selling at the British bank.
On currencies, the euro lost 0.2% against the dollar at 1.0737 dollars.
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