(BFM Stock Exchange) – The Parisian index dropped down this Friday, August 28, while the PCE index, Fed’s favorite gauge to measure inflation, has not reserved a unpleasant surprise. Over the week, the Parisian index remains sharply decreases, weighted by the announcement of the vote of trust that the government will have to overcome.

The CAC 40 ends the week without momentum. The flagship index of the Paris Stock Exchange lost 0.76% to 7,703.90 points this Friday, August 29.

The Parisian market was able to be penalized by the trend at Wall Street, where the S&P 500 lost 0.69% shortly after the European fence, after having opened close to balance.

Investors have taken note of the publication of the PCE index, the preferred gauge of the American Federal Reserve (Fed) to measure inflation. The publication has not reserved a big surprise. Over a year, the increase in the “Core” index, that is to say excluding food and energy prices, has registered 2.9%, online with the expectations of economists interviewed by the Wall Street Journal.

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Recainese of political uncertainty

Over the whole week, the CAC 40 lost 3.34%. The bulk of this drop took place on Monday and Tuesday. The index had then dropped, weighed down by the political uncertainty caused by the announcement of François Bayrou. The Prime Minister said that his government would seek a vote of trust on September 8, paving the way for a potential if not likely censorship.

A sign of market worries, the rate difference on debt titles at 10 years from France and Germany (the famous “Spread Bund-oat”), the thermometer of investor confidence on the tricolor signature, is part of 80 basic points (0.8 percentage points), returning to highest since April.

“The announcement of a vote of confidence on September 8, has been blowing a wind of concern about French assets (high increase in the rate 10 years, spreat of the Spread Oat-Bund and decrease in CAC 40), while opposition parties have already announced not to trust the government, whose fall thus seems likely, which could lead to a degradation of the French debt note by Fitch on September 12 Chapon, from Arkéa Asset Management.

US employment on next week’s menu

French President Emmanuel Macron, “will have to find a new Prime Minister who will have to make concessions if he wishes to take a budget, which will be unfavorable for the trajectory of the deficit and also poses the risk of extension of the surcharge of companies or raising other contributions from the latter,” he adds.

“This causes a risk to the profits by action by French companies and could be negative in relation to the CAC40 compared to European indices,” concludes Xavier Chapon.

Note however that this political uncertainty did not have a very notable impact on the euro. “Unless a radical change in the political landscape, we do not consider that the evolution of the situation in France will constitute a lasting engine for the euro during the rest of the year”, judges Deutsche Bank.

This Friday the euro takes 0.15% against the dollar at $ 1.17.

Next week, investors will have several major meetings, with the ISM indices, a measure of the activity of the private sector, in the United States, or the results of Broadcom. The main event will however remain the publication of the American employment report for August, next Friday.

On the values ​​side, the variations remained contained on the CAC 40, this Friday. Orange signed the highest increase, with an increase of 1.20% while Pernod Ricard accused the most pronounced withdrawal with a drop of 3.2%.

Petroleum decreases a little. The October contract on the Brent de Mer du Nord abandons 0.7% at 67.44 dollars per barrel while the same maturity on the WTI listed in New York loses 0.8% at 64.07 Dollars per barrel.