CAC 40: big cold rain in the reaction to the ‘CPI’, everything fell – 09/13/2022 at 15:12

(CercleFinance.com) – It’s a cold rain: the US inflation numbers took expectations on the wrong foot and the CAC40 went from 6,394 to 6,286 in 1/2 hour (from + 1% to – 0.7%).

This correction ends a series of five upward sessions, the same scenario for the Euro-Stoxx50 which fell 1% to 3.610, the DAX gave -1% against +1.1% at 2:28 pm

The consumer price index in the United States (CPI) for August rose +0.1% instead of -0.1 to -0.2% expected.
The Labor Department revealed that the US consumer price index stood at 8.3% in August compared to the same month last year, an annual rate down from 8.5% the previous month, but Jefferies expected the reduced by 8%, after fuel. US land prices.

Excluding energy (+ 23.8%) and food products (+ 11.4%), two traditionally volatile categories, the annual inflation rate stood at 6.3% last month, a level more higher than the 6% expected by Jefferies and most brokers such as Goldman Sachs.

Subsequently, i.e. between July and August 2022, consumer prices in the United States increased by 0.1% in raw data and by 0.6% excluding energy and food products: it denies the hope that the peak of inflation exceeded in July.

‘If core inflation rises, it will reverse a streak of three months of decline and put some pressure on the Fed to tighten its tone at its meeting on September 19’, warns La Financière de l ‘Chessboard.

This morning, the markets reacted positively to the ZEW index under the principle of ‘bad news = good news: the ZEW economic climate barometer for Germany fell by 6.6 points to a value of -61.9 in September, while the economic situation has fallen dramatically. sharp 12.9 points to the current standing of -60.5.

“The prospect of a winter energy shortage makes the expectations more negative for most of the German industry. In addition, the growth in China is estimated to be not very good,” explained Achim Wambach, president of the ZEW institute .

For the euro area as a whole, the sentiment of financial market experts about economic development fell by 5.8 points to -60.7 and that of the current situation further decreased, from 16.9 points to -58.9.in investor sentiment in Germany, which will be fuel. fear of growth in Europe.

The New York Stock Exchange is expected to fall sharply (-1.4% for the Dow Jones, -2% for the S&P500) with -2.5% for the Nasdaq which is more sensitive to interest rate pressures while the yield of Treasuries up to ten years recovered 8 basis points, to 3.442%, flirting with the worst level in mid-June.

The ‘2 years’ rose by +14Pts beyond 3.70%, the ‘1 year’ by almost +20Pts to 3.86%, the annual record was crushed.
The German Bund tightened +9Pts to 1.735% (against 1.75% the previous day), our OATs showed +8Pts to 2.295%.

The dollar rose sharply (+ 1.2%), rising from 1.0140 against the euro to 1.0010.

Oil prices continued their yo-yo movement after yesterday’s sharp rise on rumors of a possible European embargo on Russian petroleum products. The barrel of Brent decreased by 1% to 93.2 dollars and the light crude -1.2% to 87.1$.

On the stock side, Bouygues Travaux Publics has expanded its offer of infrastructure solutions for offshore wind energy, with the exclusive acquisition of the OO-STAR floating base technology, owned of Floating Wind Solutions. This technology makes it possible to adapt to a large number of marine environments, reduce the carbon footprint of the wind farm infrastructure and reduce operating and maintenance costs.

Aveva is close to reaching an agreement with Schneider according to Sky News. Schneider could acquire Aveva based on a value of £9 billion.

According to Sky News, the two groups will discuss buying the 40% of Aveva that Schneider does not already own based on a price above £30 per share. Schneider already holds 60% of the capital. This sum would value the purchase price by 40% at around £3.5 billion. This agreement should be concluded before September 21 according to banking sources interviewed by Sky News.

Air Liquide has announced the sale of its Industrial Merchant activities in Saudi Arabia to Abdullah Hashim Industrial Gases & Equipment, a joint venture with Air Products for its Industrial Merchant activities in Saudi Arabia. This sale is not significant for Air Liquide’s entire coverage in the Africa Middle East and India zone.

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