There was not a sixth consecutive rally session on the Paris Stock Exchange. During this day on Wednesday, Cac 40 gave up more than half of the lead he had just collected. In conclusion, the main index fell by 0.97%, to 6528.32 points, with a trading volume of 2.76 billion euros, particularly affected again by one of its heavy companies, Sanofiwhich fell 5.6%. The pharmaceutical laboratory has announced the discontinuation of development of amcenestrant and its adjuvant therapy in breast cancer, as ongoing trials have not achieved the goals set according to a preliminary analysis of the data. The action had already been brought down last week due to concerns about the financial consequences of the upcoming lawsuits over Zantac, which were pulled from US markets in 2019. But on the plus side, in this regard, GSK is also involved in the case, said the plaintiff’s attorney at the scheduled first trial. To begin on Monday in Illinois intends to withdraw his suit.
Another explanation for Wednesday’s drop can be found on Wall Street, where cautionary data prevails a few hours before the release of the minutes of the Federal Reserve’s latest monetary policy meeting, which led to another 75 basis point hike in key interest rates. The Dow Jones It has 0.73% and Nasdaq Composite 1.56%. The only major census scheduled in the United States turned out to be largely in line with expectations. In July, retail sales remained flat, versus a slight increase of 0.1% unanimously expected. Excluding autos and gas, the rise was slightly stronger than expected, at 0.7%, versus +0.4% according to the consensus. A new sign of the strength of the US economy, following the latest employment figures for July.
More “offensive” minutes than expected?
This report from the Fed is, midway through August a gain (contrary to what the stats have taught us), an important meeting for stock markets, even if the FOMC’s next decision will depend above all on August inflation numbers and comments that The Jackson Hole Symposium will release at the end of the month, the annual US meeting of the planet’s top central bankers.
Be careful, Ipek Ozkardiskaya, of Swissquote, noted this morning: “ Minutes will surely seem more “Offensive” than expectedThe Fed’s interest rate expectations are likely to have softened a lot after last week’s US consumer price report surprised 8.5% weaker-than-expected inflation. This 8.5% level is still very high; That’s more than four times the Fed’s 2% policy target. »
UK inflation has reached its highest level since 1982
” Real yields are expected to rise in the fall, which could again put pressure on developing stocks, Gabriela Santos, global strategist at JP Morgan Asset Management believes, Despite the recent releases of macroeconomic data, which drove markets higher, it is too early to be convinced of the development of inflation in the fall or next year, and we don’t know how the Fed will react to these numbers. »
Today’s statistics in Europe are not reassuring. In the UK, consumer prices rose 10.1% in one year in July, the highest level since 1982 and beyond the 9.8% consensus forecast. The average annual energy bill for a home in the UK is around £2,000, double what it was last year. Reuters quoted research firm Cornwall Insight that the amount could exceed 4,000 pounds by January. The final inflation figures for July in the Eurozone will be published tomorrow.
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