Transient? Persistent? The modest increase of only 0.1% over one month in consumer prices in August in the United States, excluding energy and foodstuffs, may suggest that the recent surge in inflation is not definitive. Including energy and food prices, inflation stood at 0.3% month-on-month, against an increase of 0.4% expected by the Bloomberg consensus. ” Inflation linked to the reopening [de l’économie] had almost peaked as prices rebounded to pre-pandemic levels or above, but the spread of the Delta variant, which appears to be dragging down demand for services, put further downward pressure on these prices, comments Paul Ashworth, chief US economist at Capital Economics. We expect further declines over the next few months, as inflationary pressure eases, and maybe even reverses a bit. But if you look under the hood, you can see that cyclical inflationary pressures continue to build. It’s the latter that should really worry the Fed, as it means core inflation will stay above target for the foreseeable future.. The US central bank (Fed) is due to meet on September 21 and 22. Any ad on a tapering, or reduction of the asset purchase program, will be closely watched, of course.
New health restrictions in China
This inflation figure enabled the 40 to temporarily reduce its losses. After a session high of 6,677.07 points, the Parisian barometer fell again, in the wake of Wall Street, and ended down 0.36%, to 6,652.97 points, in a volume of transactions of almost 3 billion euros. In the United States, as in France, the market is weighed down by the decline in banking stocks and the luxury sector. In Paris, Dry divested 2.76%, LVMH 1.55% and Hermes 0.74%, while in London Burberry dropped 1.76% and that the Swiss Richemont lost 3.54% in Zurich. The doubling of the number of cases of Covid-19 contamination in the Chinese province of Fujan, where travel restrictions have been imposed, raises fears of a slowdown in the economic recovery in China and therefore weighs on the luxury sector . ” Chinese growth fears are still a good explanation for the decline in luxury goods », Underlines Chris Beauchamp, chief market analyst at IG. To make matters worse, AlphaValue downgraded its opinion on LVMH and on Dry, passing from “accumulate” to “lighten”.
Kretinsky crosses the threshold of 5% of TF1’s capital
Also in the red, the title of the steelmaker ArcelorMittal ended down 1.34%. Iron ore prices are at their lowest level of the year, while the decline in production decided in China weighs on demand.
A l’inverse, Technip Energies won 3.84%. JPMorgan has made the petroleum, LNG and petrochemicals engineering group its favorite European stock in the European petroleum services sector. He maintains his board to “overweight”, while raising its target price from 16.20 to 17.60 euros.
At last, TF1 gained 1.18%. Czech businessman Daniel Kretinsky has crossed the threshold of 5% of the capital of the television group, according to a notice published on Tuesday by the Financial Markets Authority. According to The echoes, the entrepreneur could further increase his participation.
Across the Atlantic, all eyes are on Apple. The Cupertino giant holds its traditional keynote. Entitled “California streaming”, it will be the opportunity for the group to unveil its new range of iPhone, with better cameras and greater storage capacity. It will also showcase its AirPods 3 and Apple Watch Series 7.