Published on : 15/09/2022 – 11:26
Paris (AFP) – Caution dominated Thursday at the Paris Stock Exchange in the face of the prospect of increased monetary tightening in the United States and the risk of recession in Europe.
The star CAC 40 index was in balance (+0.03%) at 6,224.18 points around 10:30 a.m. after two sessions in the red following the publication on Tuesday of US inflation figures for August which emerged ahead of expectations and paving the way for a sharp rate hike from the US central bank when it meets in a week.
“There is not enough good news to facilitate a lasting rise in the stock market indices. On the contrary, the latest statistics (that of inflation in August in the United States, for example) rather encourage caution. Added to this is an increased risk of recession in most European countries, including France,” said Christopher Dembik, director of macroeconomics research at Saxo Bank.
“Inflation is to be expected to be very volatile in the months to come,” he warns.
Inflation reached 5.9% over one year in France in August, INSEE said on Thursday, which revised its first estimate published at the end of August up by 0.1 point.
Banque de France Governor Francois Villeroy de Galhau expects European Central Bank rates to rise to a “neutral” level near 2% by December, before going further depending on the inflation.
Last week, the ECB decided to raise rates by 75 basis points, not seen since 1999, in order to fight against inflation and warned that other rate hikes would follow.
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LNA Health also in shape
The title of the group of medical care and retirement homes climbed 7.83% to 32.35 euros after the announcement of a net profit up more than 20% in the first half, driven by an improvement in its level of activity and by reducing its expenses.
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