2023-08-11 08:21:05
The Paris Stock Exchange fell slightly by 0.81% on Friday, following signs of concern in China and gloomy comments from an official of the American central bank.
The main CAC 40 index yielded 57.53 points to 7,375.76 points around 10:05 a.m. Thursday, the index had taken 1.52%, carried by the luxury sector and the figures for inflation in the United States.
The balance sheet for the week is at this stage of the day clearly positive (+0.79% compared to last Friday’s close), even if the variations were amplified by low trading volumes characteristic of the trough of the summer.
Before the weekend, investors will take note of the producer price index in the United States in July.
Published Thursday, the CPI consumer price index showed a rise of 3.2% year on year for July in the United States, a little less than what analysts expected. Core inflation, which excludes energy and food prices, continued to slow over one year, to 4.7%.
For Madison Faller, strategist at JP Morgan Banque Privée, a rebound in inflation “was to be expected given the rise in energy prices from the lows of last year”, but “the essential is that underlying inflation continues to decline – and there is plenty of room for that to continue”.
Looked at through the prism of US monetary policy, these figures “do not change the situation”: “it seems that the Federal Reserve is at the end of its tightening cycle or that it is approaching it”, estimates Madison Faller .
However, investors were put off by comments from San Francisco Federal Reserve (Fed) Chair Mary Daly, who told Yahoo! Finance that “it is not a single number that declares” the “victory” of the Fed on inflation. “There is still work to do. And the Fed is fully committed to resolutely bringing inflation back to its 2% target,” she said.
In France, the rise in consumer prices was confirmed at 4.3% over one year in July, once morest 4.5% in June.
In China, investors, who have been worried for several months regarding the strength of the economy, now fear the consequences of the real estate crisis.
“Chinese local governments are highly indebted and (…) the real estate crisis is causing their debt-to-income ratio to skyrocket,” said Swissquote Bank analyst Ipek Ozkardeskaya, who further reports that Country Garden, China’s largest real estate developer , might post a huge loss in its half-year results.
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