There has not been a sixth session of rise in a row on the Paris Stock Exchange. During this day on Wednesday, the Cac 40 even gave up more than half of the lead it had just accumulated. At the close, the flagship index fell 0.97%, to 6,528.32 points, in a trading volume of 2.76 billion euros, weighed down in particular once again by one of its heavyweights, Sanofi, which fell 5.6%. The pharmaceutical company announced stopping the development of amcenestrant, its adjuvant treatment in breast cancer, the ongoing trials having not reached the objectives set according to a preliminary analysis of the data. The stock had already plunged last week due to fears of the financial consequences of the upcoming lawsuits over Zantacwithdrawn from the American markets in 2019. On a positive note, however, in this regard, GSK, also involved in the case, indicated that the plaintiff’s lawyer in the context of the first trial which was to open on Monday in Illinois intended to withdraw his complaint.
The other explanation for this Wednesday’s decline is to be found on Wall Street, where cautionary releases prevail a few hours before the publication of the minutes of the Federal Reserve’s last monetary policy meeting, which resulted in a further 75 basis point hike in key rates. the Dow Jones loose 0.73% and the Nasdaq Composite 1.56%. The only prominent stat that was programmed to the UNITED STATES turned out to be generally in line with expectations. In July, retail sales remained stable, against a slight increase of 0.1% expected by the consensus. Excluding cars and gas, the rise was a little stronger than expected, at 0.7%, against +0.4% according to the consensus. A new sign of the strength of the American economy, after the latest employment figures for July.
Minutes more “offensive” than expected?
This report of the Fed constitutes, halfway through a winning month of August (contrary to what the statistics tell us), an important appointment for scholarship holders, even if the next decision of the FOMC will depend above all on the inflation figures for the month of August and on the comments that will emerge from the symposium of Jackson Hole at the end of the month, annual American meeting of the world’s major central bankers.
Be careful, Ipek Ozkardeskaya, of Swissquote, indicated this morning: ” The minutes will certainly seem more ‘offensive’ than expected, as Federal Reserve rate expectations have probably softened too much after last week’s US consumer price report surprised with inflation 8.5% weaker than expected. This level of 8.5% is still very high; that’s more than four times the Fed’s 2% policy target. »
UK inflation at highest since 1982
« Real yields are expected to rise further in the fall, which could once again put pressure on growth stocks, believes for her part Gabriela Santos, Global Strategist at JP Morgan Asset Management, despite the recent macroeconomic data releases, which drove the markets higher, it is too early to have any conviction on the evolution of inflation in the fall or next year, and we do not know how the Fed will react to these figures. »
The statistics of the day in Europe did not reassure. United Kingdom, consumer prices soared 10.1% year on year in July, a highest since 1982 and beyond the 9.8% expected by the consensus. The average annual energy bill for a UK home is nearly £2,000, almost twice as much as a year ago. It could exceed 4,000 pounds by January according to the research firm Cornwall Insight, relays the agency Archyde.com. The final inflation figures for July in the euro zone will be published tomorrow.