CAC40: inexorable rise, rate down after EU CPI – 2023-01-18 at 15:17

( – The Paris Stock Exchange (+0.5%) is preparing for an 11th bullish session (out of 13) since January 2, making it one of the longest bullish series (cumulative gain of +9.5%) without a retracement of 0.5% in history, and certainly the longest series at the beginning of a year since the Paris stock exchange has existed.

The CAC40, which exceeded 7,100 (at 7,112), had well anticipated the publication of a series of indicators confirming the slowing trend in inflation, thanks to the net decline in energy prices.

According to the professionals, the achievement of the target level of 7,085 points could be the culmination of a first objective in the medium term… but the rise continues inexorably.

As for the CAC40 ‘GR’, it reached 20,900 and is only 0.5% away from its all-time record of January 5, 2022.

In the United States, the headline increase in producer prices slowed markedly, to -0.5% in December 2022 compared to the previous month, but core inflation increased by 0.1%, excluding food, energy and services commercial.

In the last twelve months, the rise in industrial prices stood at 6.2% in gross data and 4.6% excluding food, energy and commercial services, after annual rates of 7.3% and 4 .9% respectively observed in November.

Retail sales in the United States fell more than expected in December 2022, contracting 1.1% after falling 1% the previous month, according to the Commerce Department.

Excluding the auto sector (vehicles, equipment and service stations), US retail sales contracted 0.7%.

In the United Kingdom, the respite in energy prices should allow inflation to moderate somewhat, which should nevertheless remain in double digits.

Investors also took note of the final figures for consumer prices in the euro zone for the month of December: the annual inflation rate stood at 9.2% in December 2022, up from 10.1% in November. , according to Eurostat, thus confirming its quick estimate for the last month of last year.

The annual inflation rate in the European Union stood at 10.4% in December 2022, compared to 11.1% the previous month, the lowest rate being observed in Spain (5.5%) and the highest in Hungary (25%).

These figures are very well received in bonds with a new relaxation of -10pts in our OATs at 2.432%, -10pts in the Bunds at 1.9880% and in Spanish Bonds (-13pts at 2.937%) and the Italian construction companies erase -17pts at 3.72%.

It also improved on the US side with T-Bonds at -13.5 Pts towards 3,400%.

The dollar falls -0.5% and falls back to its annual minimum, towards 1.0870E.

Note further bullish momentum in oil with Brent at $87.3 in London (+0.7%).

In French business news, the Renault Group announces its global sales figures for 2022. They amount to 2,051,174 vehicles, down 5.9%.

Stellantis has signed an agreement with Terrafame for the supply of nickel sulphate for electric vehicle batteries.

BNP Paribas announces the receipt of regulatory clearances for the completion of the sale of its US subsidiary Bank of the West to BMO Financial Group, a transaction that was the subject of an agreement announced in December 2021.

Lastly, Pierre & Vacances published last night a group turnover for the 1st quarter of ME 390.7, 9.9% more than in the same period of the previous year.

Vince Fernandez

"Professional food trailblazer. Devoted communicator. Friendly writer. Avid problem solver. Tv aficionado. Lifelong social media fanatic."

Leave a Reply

Your email address will not be published. Required fields are marked *