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CAC 40: Big cold shower in response to ‘CPI’, everything falls – 09/13/2022 at 15:12

(CercleFinance.com) – It’s a cold shower: US inflation figures misfire expectations and CAC40 strikes from 6,394 to 6,286 in 1/2 hour (+1% to -0.7%).

The correction ended a streak of 5 upward classes, the identical situation for the Euro-STOXX50 which fell 1% to 3.610, versus the DAX yielding +1.1% at 2:28 pm

The Consumer Price Index (CPI) in the US rose +0.1% for August as an alternative of -0.1 to -0.2% anticipated.
The Labor Department revealed that the US shopper worth index stood at 8.3% in August in contrast to the identical month final yr, down from the annual charge of 8.5% the earlier month, however Jefferies had anticipated a decline to 8% in phrases of gasoline. Prices on US soil.

Excluding vitality (+23.8%) and meals merchandise (+11.4%), two historically risky classes, the annual inflation charge stood at 6.3% final month, once more greater than the 6% anticipated by most brokers equivalent to Jefferies and Goldman Sachs. .

Sequentially, i.e. between July and August 2022, shopper costs in the US rose by 0.1% in uncooked knowledge and by 0.6% excluding vitality and meals merchandise: this defied expectations of inflation peaking in July.

‘If core inflation continues to rise, it is going to reverse a 3-month decline and put just a little extra stress on the Fed to tighten its tone at its September 19 assembly’, warned La Financier de l’Chessbord.

This morning, markets reacted positively to the ZEW index underneath the precept of ‘unhealthy information = excellent news’: the ZEW financial barometer for Germany fell 6.6 factors in September to -61.9, whereas financial situations eased by 12.9 factors to at the moment -60.5 is standing

“The prospect of vitality shortages in winter has made expectations in most sectors of German business extra damaging. In addition, China’s development is evaluated much less favorably,” explains Achim Wambach, president of the ZEW Institute.

For the euro space as a complete, monetary market specialists’ sentiment on financial growth fell 5.8 factors to -60.7, and investor sentiment in Germany plunged much more sharply by 16.9 factors to -58.9.in on present situations, which may gasoline fears about European development.

More delicate to rate of interest pressures for the New York Stock Exchange (-1.4% for the Dow Jones, -2% for the S&P500) was the Nasdaq -2.5% and the yield on ten-yr Treasuries is anticipated to get well 8 foundation factors, 3.442%, mid Flirting with June’s worst ranges.

‘2 Year’ rose +14Pts to 3.70%, ‘1 Year’ rose nearly +20Pts to 3.86%, annual document pulverized.
German Bunds by +9Pts to 1.735% (versus 1.75% the day earlier than yesterday), our OATs present +8Pts to 2.295%.

The greenback rose strongly (+1.2%), rising to 1.0010 from 1.0140 in opposition to the euro.

Oil costs continued their yo-yo motion after a pointy rise yesterday on rumors of potential European sanctions on Russian petroleum merchandise. Brent fell 1% to $93.2 a barrel and lightweight crude fell -1.2% to $87.1.

On the inventory facet, Bouygues Travaux Publics is increasing its providing of infrastructure options for offshore wind energy, with the unique acquisition of OO-STAR Floating Base Technology, which owns Floating Wind Solutions. This expertise makes it potential to adapt to a lot of marine environments, scale back the carbon footprint of wind farm infrastructure and scale back operation and upkeep prices.

Aveva are shut to reaching an settlement with Sneijder, in accordance to Sky News. Schneider may take over Aveva at a £9 billion valuation.

According to Sky News, the 2 teams will talk about shopping for the 40% of Avera that Schneider doesn’t already personal at a worth above £30 per share. Schneider already holds 60% of the capital. This quantity would worth the acquisition worth of 40% at roughly £3.5 billion. The deal ought to shut earlier than September 21, in accordance to banking sources interviewed by Sky News.

Air Liquide has introduced the sale of its industrial service provider operations in Saudi Arabia to Abdullah Hashim Industrial Gas & Equipment, a three way partnership of Air Products for its industrial service provider operations in Saudi Arabia. This sale is insignificant for Air Liquide’s total scope in the Africa, Middle East and India area.

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