(News Bulletin 247) – The CAC 40 lost more than 1% at mid-session this Friday, December 20 while the market awaits the publication of the PCE index, the Fed’s preferred gauge for measuring inflation.
The CAC 40 is on the ropes. The Parisian index lost 1.1% at mid-session this Friday, December 20 to 7,214.95 points, after having already dropped 1.22% the day before.
The Paris Stock Exchange, like all the world’s markets, was stunned by the American Federal Reserve which signaled on Wednesday evening that it risked applying the handbrake on rate cuts next year.
“Allusions of a more persistent inflationary risk and a less pronounced rate reduction path than expected have sent stocks and gold lower and the US dollar higher against a basket of currencies,” explain strategists at Lombard Odier.
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The PCE index in sight
“The stock market correction has, in our opinion, been exacerbated by the strong exposure of short-term investors and by tight valuation multiples, in the American market in particular. Following the Fed’s decision, investor concern has increased. is temporarily focused on inflationary risks,” they added.
Investors will be watching an important publication on inflation this Friday, namely the PCE index, the Fed’s preferred gauge for assessing rising prices. This index will be published at 2:30 p.m. and economists are counting on an increase of 2.9% in November over one year excluding energy and food prices.
On a much more political level, the American president-elect, Donald Trump, reiterated his threats of customs taxes against the European Union if the latter did not purchase American oil and gas “on a large scale”.
Novo Nordisk dives
On the value side, the entire CAC 40 is moving in the red but the biggest decline, Thales, is only -2.3%.
Note that in Copenhagen, Novo Nordisk, the largest company listed on the stock exchange in Europe, fell by 15.5% after publishing disappointing clinical trial results for its anti-obesity drug candidate Cagrisema.
On other markets, the euro gained 0.3% against the dollar to 1.0395 dollars. Oil is falling. The February contract on North Sea Brent fell 1% to $72.19 per barrel while that of the same maturity on WTI listed in New York lost 1% to $68.66 per barrel.
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