(News Bulletin 247) – The Paris Stock Exchange ended sharply higher, relieved by the slowdown in consumer prices in the United States last month. The CAC 40 rebounded by 1.4% at the close Tuesday evening.

The Paris Stock Exchange heaves a big sigh of relief after the most anticipated publication of the day, namely the American inflation figures for the month of October, which turned out to be lower than expected.

The CAC 40 thus finished up sharply by 1.39% to 7,185.68 points, compared to a meager increase of 0.1% just before these statistics published at 2:30 p.m. The flagship Parisian index even returned to 7,200 points for a few minutes, around 4:30 p.m. (+1.70% to 7,207.77 points).

Euphoria also spread to the American indices, the Nasdaq and the S&P 500 rebounded by more than 2% while the Dow Jones rose 1.7% at the close of the European markets.

It must be said that the figures published at 2:30 p.m. this Tuesday were to the delight of “bull” investors, that is to say those who are betting on an increase in the markets, because they came out lower than expectations.

The consumer price index (CPI) stood at 3.2% year-on-year in October, compared to 3.7% in September and while economists surveyed by the Wall Street Journal expected a figure of 3.3%. over a year. From one month to the next, the progression is even zero, where economists expected a slowdown to 0.1%.

Bond market easing

Better yet, so-called “core” inflation, that is to say excluding the price of food and energy, stood at 4.0% over one year, the lowest for more than two years. years. Today’s statistic further distances the prospect of a rate hike from the American Federal Reserve. Moreover, the markets estimate the probability of a rate increase of 0.25 percentage points next month at 5.2%, compared to another 14.5% the day before, according to the CME FedWatch tool.

This drop in prices also had its effect on the bond market. The yield on ten-year US debt fell to 4.463% from 4.63% on Monday.

Above all, the euro is increasing its gains, or more precisely, the dollar is losing ground. The euro zone currency rose by 1.5% against the greenback to 1.0864 dollars, while it was gaining 0.2% before these indicators.

After Orpea, Clariane

The easing of sovereign debt rates offers a breath of fresh air to technology and real estate stocks. Moreover, they are at the top of the CAC 40 this Tuesday evening, with Worldline which finished up 8.3%. The stock is followed by Unibail-Rodamco-Westfield (+7.2%), then Alstom (+5.6%) which will publish its 2023-2024 half-year results on Wednesday morning before the Paris market opens.

After Orpea on Monday, it is Clariane’s turn to be the subject of serious concerns about her financial health. The former Korian lost 12.4%, now reaching record lows after announcing a major financing plan intended to avoid a payment default in 2024.

As for oil prices, they are also celebrating after American inflation and the monthly report from OPEC which was more optimistic about the demand for black gold. A barrel of Brent from the North Sea, for delivery in January, rose 1% to 83.33 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, gained 0.8% to $78.91.