The Paris Stock Exchange should fall sharply at the opening on Tuesday April 12, worried about a probable acceleration of inflation in the United States, after a warning from the White House. The futures contract for the star CAC 40 index fell 1.50% around forty minutes before the opening of the session. On Monday April 11, it finished up slightly by 0.12%, pulling out of the game amid the other falling European stock markets.
The New York Stock Exchange ended sharply lower on Monday, weighed down by rising bond rates, while US inflation figures for March will be released on Tuesday. The White House has warned that the price hike is expected to be “extraordinarily high”, due to additional price spikes related to the war in Ukraine. In February, consumer prices had already climbed 7.9% over one year, the highest since 1982, according to the CPI index. One-month inflation is expected at 1.2% for March, compared to 0.8% in February. Michael Hewson, analyst at CMC Markets, expects a price increase of 8.4% over one year.
The Fed will tighten its monetary policy
To curb the acceleration of inflation, the American central bank (Fed) started in mid-March to raise its key rates and warned that it would continue to tighten its monetary policy in the months to come. After this first rate hike, “the probability increases of seeing more than a 50 basis point hike occurring in the coming months,” said Michael Hewson. In addition, “the latest containment measures against Covid taken by the Chinese authorities in Shanghai” are not helping to support the markets, adds the analyst. China’s economic capital is facing its biggest surge of Covid-19 since the start of the pandemic.
In France, the electoral campaign continues after the first round of the presidential election which saw outgoing President Emmanuel Macron ahead of far-right candidate Marine Le Pen by 4.7 points. But “investors do not pay much attention to the course of the French presidential election,” says analysts at Saxo Bank. “The most anxiety-provoking elements of the 2017 economic program have disappeared from Marine Le Pen’s 2022 program. (…) This is why investors are not really worried”, they note.
Values to follow
EssilorLuxottica: the global optical giant has announced the acquisition of 90.9% of the glasses case manufacturer Fedon, for 29.4 million euros, as part of its “vertical integration strategy”.
Partouche: the casino owner announces the creation of Partouche Multiverse, a subsidiary dedicated to projects in the metaverse, a concept of virtual universe in full development, with the ambition of becoming “a leading player” in “entertainment 3.0”.
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