The Palais Brongniart, former headquarters of the Paris Stock Exchange. (Photo credit: L. Grassin)
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(CercleFinance.com) – If the intervention of Jerome Powell, Friday in Jackson Hole, reassured the markets about the risk of the Fed’s precipitous monetary tightening, investors are showing themselves for the moment timid: the Paris stock exchange is evolving this morning very slight increase (+ 0.1%), around 6,690 points, in extremely thin volumes with less than 250 ME traded at 10:30 am.
After having mentioned in July a possible end to ultra-accommodative monetary policy, the Fed chairman therefore allayed fears indicating that he did not see, at present, the need to interrupt his support for the economy.
Welcoming this announcement with relief, the New York indices unrolled a new series of all-time highs on Friday at the close. Investors will now scrutinize the economic indicators expected over the next few days in order to assess whether the increase initiated in recent weeks can continue.
“There is stability or a modest decline between July and August but, at this stage, sequential growth should remain strong in the third quarter”, estimate the economists of Oddo BHF.
‘The fourth trimester would be more at risk if the health situation did not improve,’ they warn, however.
As always, the start of the month promises to be busy with leading statistics releases.
The high point of the week, the monthly employment figures in the United States will be particularly observed at the end of the week and economists expect an average of 800,000 jobs created in August.
Activity indicators in the manufacturing and service sectors will also be published at the end of the week. Here again, investors are waiting for signs that growth is holding up at very high levels.
The development of inflation will also continue to be closely monitored with the release today of the latest consumer price figures in Germany.
Note that the London Stock Exchange will be closed today, the day being a public holiday in the United Kingdom for the ‘Summer Bank Holiday’.
Graphically, the CAC 40 has now managed to get out of its stability line ranging from 6650 to 6675 points, but still remains far from the threshold of 6735 points supposed to trigger an acceleration of its bullish movement.
This situation could, however, change during the next meetings.
As for French values, Sanofi announces that a trial on Dupixent has met all of its evaluation criteria, making it the first biological drug allowing a significant reduction in the signs and symptoms of moderate to severe atopic dermatitis in children, as soon as six months old.
In contrast, Bone Therapeutics plunges 30% at the start of the session after announcing that the phase III study evaluating its improved viscosupplement JTA-004 in osteoarthritis of the knee did not meet the primary endpoint or by therefore the key secondary criteria.
The laboratory also announces the renegotiation of the 800 convertible bonds issued on May 7, 2020 (for an amount of two million euros) to Patronale Life in a loan under the same repayment conditions as the agreement with the EIB.
Finally, Olympique Lyonnais announces the transfer of its Ivorian international, Maxwel Cornet, to the English club Burnley (Premier League) for an amount of 15 million euros, of which 15% will be donated to FC Metz as part of the capital gain realized on this transaction.
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