Caution as the key word for this Tuesday session. In the middle of the day, the Cac 40 lost 0.81% to 7,380.61 points, the day after a slight gain of 0.11%.
No trend, it must be said, coming from Wall Street, where the major indices were content to oscillate around their closing levels. The Dow Jones slid 0.17% when the Nasdaq Composite climbed 0.18%. And for the moment, red is the order of the day for this early afternoon. A lot of reservations as consumer prices for the month of April approach, which will be presented this Wednesday. It is hoped that core US inflation will fall from 5.6% in March to 5.5% over one year, while the overall figure could have stabilized around 5%. But, in monthly data, the latter could have increased by 0.1% to 0.4% due to the rise in energy prices after the reduction in production undertaken by the OPEC + countries. ” Any upside inflation surprise would put Fed hawks back in the spotlight and lead to lower dovish expectations “, indicated Monday Ipek Ozkardeskaya, of Swissquote.
Tighter credit conditions
While the latest jobs numbers released on Friday came in strong, Mike Wilson, chief U.S. equity strategist at Morgan Stanley, said the market is too optimistic about the chances that Fed rate cuts could be accompanied by further increases. sustainable growth. ” The Stock Exchange continues to bet on the best of both worldshe wrote in a note, we consider the probability of these two elements occurring in concert this year to be low, and our economists do not expect any rate cuts in 2023. Investors today have an overly optimistic view of politics from the fed ».
As a result, too, according to the latest opinion survey (“Sloos”) of Federal Reserve officials, the number of banks that have tightened their credit conditions came out higher than expected, at 46%, against 44 .8% expected. “DTighter standards, weaker demand for commercial and industrial loans, less favorable macroeconomic conditions, reduced risk tolerance, deterioration in the value of collateral, and concerns about funding costs and banks’ liquidity positions were among the issues. among the key words and expressions that emerged from this survey “, Details this morning Ipek Ozkardeskaya.
An “economic disaster”
Another cause for concern is the US debt ceiling. Avoid at all costs a possible defect. Treasury Secretary Janet Yellen sounded the alarm again, saying a non-raise would be a ” economic disaster “. Time is running out because, according to Janet Yellen’s calculations, the government would run out of money to pay its bills by June 1, almost two months earlier than Goldman Sachs economists had expected. To avoid a national debt default, Congress must vote to raise or suspend the limit before the Treasury runs out of emergency funding. Joe Biden invited in turn, to the White House, the Republican President of the House of Representatives, Kevin McCarthy (this Tuesday), the Democratic leader of the House, Hakeem Jeffries, that of the majority in the Senate, Chuck Schumer, and Republican leader Mitch McConnell.
Little information from the business side. Little information from the business side. Releases to be noted in the luxury sector, the heaviest on the French coast, like Dry (-2.2%) or Hermes (-1,7%). TotalEnergies loses 1.2%.
2023-05-09 10:15:55
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