If the macroeconomic program was sparse at the beginning of the week, it accelerates this Friday for the last session of June and the second quarter. Inflation is in the spotlight on the Old Continent with the first estimates for June in France, Spain and Italy. The harmonized consumer price index rose by 2.5% over one year in France, in line with expectations, slightly declining after 2.6% in May, indicated INSEE. But it is towards the United States that all eyes will be turned.
At 2:30 p.m., the Labor Department’s Bureau of Statistics will publish data on U.S. household income and consumption in May, as well as the Federal Reserve’s most closely watched inflation measure. The underlying index is forecast to post an annual rate of 2.6%, down 2 percentage points since April. This would be its lowest level since March 2021. Financial markets are estimating a 60% probability that a first rate cut will occur in September, according to the FedWatch gauge developed by CME Group. But beware, “if core PCE inflation turns out to be higher than the expected 2.6% and after the upside inflation surprises in Canada and Australia, this would fuel fears of a disinflationary trend that has bottomed out globally,” notes Tony Sycamore, an analyst at IG.
Beauty market less buoyant than expected, according to L’Oréal
The CAC 40 lost 0.38% to 7,502 points around 9:30 am, affected by the decline of L’Oréal. The number one in the cosmetics industry lost 3%, after having already suffered the day before from the comments made by its CEO, who revised downwards his growth forecasts for the global beauty market for 2024, bringing them down to between 4.5%-5%, against a previous forecast of 5%, reports the Bloomberg agency, citing a spokesperson for the company.
A slightly positive opening is emerging on Wall Street. Nike there fell more than 12% in post-market trading yesterday after reporting revenue and guidance that fell short of analysts’ projections. The company is seeing sales decline 10% this quarter and anticipates a single-digit decline for the fiscal year that began this month. Analysts had expected growth of around 2% this year. In the wake of the world leader in sports clothing and equipment, Foot Locker, Under Armor and even Lululemon have declined.
Among Paris-listed companies, Air France-KLM lost 3.8% in reaction to Barclays’ downgrade from “overweight” to “in line weighting”, citing political instability in France, while Antin gained 6.3% following Citi’s upgrade from “neutral” to “buy”.
