(BFM Bourse) – The Paris Stock Exchange rose more than 1% at midday. Equity markets were well focused ahead of the afternoon publication of German inflation numbers for August and US consumer confidence again for the current month. Other indicators are also in the program in the United States.
The CAC 40 ended its bearish streak. The flagship index of the Parisian area rebounded 1.2% Tuesday to 6,296 points around 12:30 p.m. On Monday, it lost 0.83% after falling 3.41% last week to post its worst weekly performance in two months.
Earlier in the day, American indices gave ground, investors remained on their guard after the meeting in Jackson Hole held at the end of last week. The Chairman of the Federal Reserve (Fed), Jerome Powell, showed on Friday his strength in the fight against inflation, prompting market operators to raise their expectations for the next monetary tightening. of the American central bank.
Market fueled inflation
Inflation still dominates the debates in the stock market as investors will learn at 2:30 pm this German data for the month of August. The evolution of prices in the first economy of the euro zone will be closely examined as in July the inflation increased by 8.5% in the previous month on an annual basis. The consensus expects a further increase of 8.8% for the current month.
The evolution of prices in Germany will give some clues to the next monetary policy decision of the European Central Bank (ECB). At the end of the week, many members of the European institution dared to argue for a sharp increase in interest rates at the meeting in September. Among them, Martins Kazaks, the governor of the central bank of Latvia, a country where inflation exceeds 20%, estimated that the discussion should be between raising rates by 50 basis points (0.5 percentage points) or 75 basis points. ECB Chief Economist Philip Lane was more cautious on Monday. The Irishman thus promotes a “regular rhythm” of rises that are neither too slow nor too fast.
In Spain, the numbers are already known and show a slight slowdown in the rate of price increases on the other side of the Pyrenees. In August, inflation reached 10.3% for a year after 10.7% in July. Excluding volatile items (energy and food), prices nevertheless rose 6.4% year-on-year after rising 6.1% in the previous month.
Animation on the side of Poxel and Afyren
On the stocks front, Sanofi gained 1% as the US health authority (FDA) agreed to grant priority review to its biologics license application for efanesoctocog alpha (co-developed with Sobi) for the treatment of hemophilia A.
Orpea rose on the stock market (+2.4%) after pledging to return some of the excessive public aid received.
Carrefour returned for its share of 1.2%, punished by a deterioration of JP Morgan which now goes to neutral against the previous outperformance.
On the side of small and mid-caps, Poxel gained 8.5% as the biotechnology company announced on Tuesday the first positive results for the phase II study evaluating the drug candidate PXL065 to treat ” soda sickness”.
Afyren valued at 6%, the Clermont “greentech” recently announced the signing of strategic contracts with two players in the cosmetic and nutraceutical markets.
The euro, meanwhile, gained ground against the dollar, rising 0.4% to 1.0042 dollars in anticipation of a tougher tone from the European Central Bank on its key rates. Oil contracts turned lower after their strong gains on Monday. The October Brent North Sea contract gave up 2.35% to 102.64 dollars. The contract of the same maturity for light sweet crude oil (WTI) listed on Nymex lost 1.5% to 95.54 dollars per barrel.
Sabrina Sadgui – ©2022 BFM Bourse