The stock market hits new records after reassuring inflation figures in the United States

The stock market hits new records after reassuring inflation figures in the United States
The stock market hits new records after reassuring inflation figures in the United States

For the first time this year, American inflation has not had any unpleasant surprises! A relief for investors and for the members of the monetary policy committee, scalded by three reports showing consumer prices higher than expected. In April, the overall inflation rate therefore fell to 3.4% year-on-year, compared to 3.5% in March, the monthly figure having turned out to be lower than expected, at 0.3%. Good news never comes alone, the basic index, measured excluding food and energy – two very volatile components – returned to 3.6% over one year, its lowest level since May 2021.

Immediate consequence: the market carried out a “dovish” reassessment of its interest rate expectations. From now on, he is betting on an easing of around 50 basis points in 2024. “One swallow does not make a summer, and while today’s data is welcome, it is not enough, on its own, to give policymakers the confidence to cut rates now,” says Michael Brown, strategist at Pepperstone. The most likely scenario, “priced” at 53%, is that of a first gesture in September. On the stock market, the S&P 500 and the Nasdaq, with their strong technological coloring, took the opportunity to set new records, at 5,292.13 points for the first and 16,674.12 points for the second. The Dow Jones rose 0.6%, bringing its six-month increase to almost 14%. On the bond market, the yield on ten-year American rates eased, to 4.36%, like that of two-year loans, reduced to 4.748%.

Burberry’s results fall

In Paris, the Cac 40 also signed a new closing high, at 8,239.99 points (+0.17%) even if its progression was slowed down by TotalEnergies (-1.24%), Carrefour and the sector luxury. Kering and Hermès suffered the backlash from the disappointing results of the British Burberry, whose stock fell 6.3% in La City. The house known for its tartan trench coats saw its annual operating profit tumble by 34% following its repositioning in order to move upmarket. She still plans a first semester “ difficult “. For its part, Carrefour dropped 4.08%, to last position in the Cac 40 after JP Morgan’s decision to downgrade its opinion on the distribution group’s stock from “neutral” to “underweight”.

Conversely, the oil services group CGG soared 19.64%, to its highest level in four months, after announcing quarterly turnover up 30%, to 273 million dollars. At the same time, the group reduced its net loss from $16 million to $3 million and multiplied its net cash position 30-fold in one year.

Among other companies that made headlines, Trigano fell 6.8%. If the motorhome specialist displays an excellent level of profitability at the start of the season, its cash generation is occasionally negative in the first half, with an operational cash flow of -55.6 million euros, the need for working capital weighing 260.1 million.

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