(News Bulletin 247) – The Paris Stock Exchange closes slightly higher, close to 8,000 points after the publication of two statistics relating to inflation on both sides of the Atlantic. On a weekly basis, the CAC 40 lost nearly 1.3%.

It was I-day or inflation day on the markets in Europe and the United States. And finally, the Paris Stock Exchange managed to negotiate these two crucial meetings without too much difficulty, with a CAC 40 which ended up slightly by 0.18% at the gates of 8,000 points, at 7,992.87 points this Friday evening.

The markets therefore took note of the PCE index in the United States, the preferred gauge of the American Federal Reserve (Fed), for the month of April. Ultimately, this indicator came out in line with expectations, with inflation of 2.8% excluding energy and food prices, and 0.2% monthly.

Above all, household spending slowed significantly, by 0.2% in April compared to an increase of 0.3% expected by the consensus, and after an increase of 0.7% in March.

“The fact that the core PCE continues to fall, even slowly, and that it is no longer so far from 2% eliminates the possibility of a return to rate hikes by the Fed. But this is very likely not enough for the Fed is rushing towards rate cuts: on the timing of these, it is perhaps the deterioration of the labor market which will ultimately decide the members of the FOMC (Fed monetary policy committee, NLDR)”, notes Bastien Drut, head of strategy and economic studies

A little earlier today, operators took note of the harmonized consumer price index in Europe, which increased by 2.6% year-on-year in May compared to 2.4% the previous month. However, the European Central Bank should begin its cycle of rate cuts from June, despite the publication of unexpected inflation figures in Europe, just before the quarterly meeting of the European Central Bank (ECB).

“The ECB is expected to announce its first rate cut after a long period of high rates, and the timing of the publication of inflation figures could significantly affect its decision-making process,” says Florian Ielpo, head of macroeconomic research at Lombard Odier Investment Managers.

While the wave of publications has passed, macroeconomics and by extension the intentions of central banks regarding their monetary policies have therefore captured the minds of investors this week. The CAC 40 shows a negative weekly balance (-1.26%) for the third consecutive week. The flagship Parisian index thus ends the month of May with a paltry gain of 0.10% saved by an excellent week of May 6 (+3.29%), marked by an absolute record at 8,259.19 points.

Technology on the stock market

On the value side, tech has suffered a lot. Capgemini showed the biggest drop in the CAC 40 at the close (-4.5%), while both Jefferies and JPMorgan lowered their opinion, going from buy to hold (or equivalent). The two notes from American banks point to a recovery in the IT services sector which risks delaying over time.

Alten lost 2.1%, Worldline lost 1.3% and Dassault Systèmes 1.2%. OVHcloud returned another 11% after dropping 14.6% the day before following a downgrade from Stifel.

Neoen rebounded by 20.6%, the price approaching the offer contained in the proposed takeover of Canadian Brookfield, announced Thursday.

For identical reasons, a price which adjusts to a repurchase price, Micropole soared by 44.8%. On other markets, the euro advanced 0.17% against the dollar to 1.0853 dollars. Oil is falling again. The July contract on Brent from the North Sea returned 1.20% to 80.90 dollars per barrel, while that on WTI listed in New York fell by 1.40% to 76.81 dollars per barrel.