It “could shrink the economy to reduce inflation”, the stock market did not appreciate

Posted November 17, 2022, 5:50 PMUpdated November 17, 2022, 6:26 pm

It is at all times very troublesome to stop the fall of the American market… This Thursday’s session was one other instance and the Cac 40 index misplaced 0.47% to finish at 6,576.12 factors, on an trade quantity of three.07 billion euros, after spending virtually all the crimson day in New York, the Dow Jones 0.54% and The Nasdaq Composite declined 0.86%.

Fiscal tightening and the cumulative impact of price hikes this 12 months lead to greater recession dangersMark Haefele, chief funding officer at UBS Global Wealth Management, is worried in a word printed by CNBC. We proceed to imagine that the macroeconomic preconditions for a sustained restoration – rate of interest cuts, resumption of development and company earnings – are not but in place. »

“a restricted impact”

A situation that does not name for a continuation of the rise of main stock market indices, nor the final announcement of a number of members of the American Federal Reserve. James Bullard, president of the St. Louis Fed, thus introduced Thursday that financial tightening was ” Only a restricted impact So far on inflation and estimates that charges are not but at a degree.” may be thought of fairly restrictive According to him, the price of 5% to 5.25% is “ the minimal Necessary to stop the highest inflation in 40 years.

Esther George of the Kansas City department reported this info The Wall Street Journal that he did not see how to reduce inflation with out inflicting a recession in the economy and ” Maybe it should take a contraction to get there ” The feedback revived recession fears and, in bond markets, the 10-year US bond yield rose 8 foundation factors to 3.775%.

The American indices of the day had been no exception to the rule that actual property suffered from rising rates of interest. At the similar time, the labor market is exhibiting resilience, as it’s, and it’s new, customers, whose spending is not weakening regardless of the enhance in credit score prices. Housing begins fell 4.2% to 1.425 million items in October at an annualized price. The Philadelphia Fed’s exercise index contracted to -19.4 factors in November, in contrast to -6 anticipated and -8.7 in the earlier month. Conversely, employment remained tense with a shock contraction of 4,000 to 222,000, in accordance to weekly jobless claims. Yesterday, retail gross sales rose 1.3%, beating expectations.

Cac 40’s Bouygues Red Lantern

Boogies It misplaced 6.5% after asserting a 33% drop in internet revenue to 537 million euros in the first 9 months of the 12 months. The development large confirmed its annual monetary targets, however the group, which benefited from higher profitability TF1 and its telecom operations, stated it was not related to give a revenue goal for it Cola In 2023.

Renault Gained 2.3%. The automaker might promote greater than half its stake Nissan Motor to a belief fund to deliver it to the degree the Japanese producer holds in its personal capital, Nikkei Asian Review reviews.

atos elevated by 2.7%. The digital companies group has introduced that it’s in unique talks with Lutec for the sale of its operations in Italy. ” Given the group’s monetary place, any disposal of belongings is a welcome improvement Commented analysts at Oddo BHF, who estimate the transaction quantity at round 200 million euros. this operation” The 700 million euro settlement will enable us to safe two-thirds of the program which is on monitor “stated Diane Galbe, Deputy CEO of Atos in a press launch.

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