CAC40: weighed down by German inflation and decline in the luxury sector – 05/29/2024 at 5:10 p.m.

CAC40: weighed down by German inflation and decline in the luxury sector – 05/29/2024 at 5:10 p.m.
CAC40: weighed down by German inflation and decline in the luxury sector – 05/29/2024 at 5:10 p.m.

(CercleFinance.com) – The Paris stock market – which lost 1.4% – fell by more than 1.5% around 3:30 p.m. (the CAC40 falling to around 7,926 points) and seems to be struggling to move away from the lows of day, in the wake of the decline in luxury values ​​with -2% for LVMH (compromised supports) and Kering on average and -1.5% for Hermès.

The losses widened significantly from 2:00 p.m. with the publication of the first German inflation figures for the month of May: HICP inflation stood at +2.8% at an annual rate compared to +2.4% in April (consensus of +2.6% to +2.7%).

The relative resistance of the US indices since 3:30 p.m. (-0.4% for the Nasdaq to -0.9% for the Dow Jones) makes it possible to limit the damage a little (the E-Stoxx50 drops -1.3%) but the tension in rates risks weighing by 5:30 p.m. with +8Pts on Bunds and OATs at 2.673% and 3.161% respectively.

The German ‘CPI’ suffered from an unfavorable basis of comparison, prices had fallen during the same period last year due to a deliberate reduction in public transport prices.

The consumer price index in basic version (CPI ‘core’) over one year stands at 3%.

Market participants will obtain other indications by the end of the week on the evolution of prices in Europe with the Spanish figures tomorrow then the data in France and the euro zone which will appear on Friday.

All these figures will be decisive in confirming the hypothesis of a rate cut by the European Central Bank (ECB) from next week.

Markets will also be on the lookout for PCE inflation data in the United States on Friday, the Federal Reserve’s favorite indicator of price dynamics, expected to decline slightly.

The yield on ten-year American Treasuries meanwhile rises by +7Pts, above 4.6100%, and this supports the Dollar which recovers +0.45% towards 1.0812/Euro.

The rise in rates only marginally penalizes Gold with an Ounce down -0.4% towards $2,340.

In French company news, Exail Technologies announces that it has signed a first partnership with Safran for WIZY-WAP, its latest generation on-board communications equipment, a partnership which should ultimately generate an annual turnover of several million euros.

Safran also announces that its innovations have been recognized by a Crystal Cabin Award in the ‘Cabin systems’ category for the ‘CUBE’ developed by Safran Cabin.

Bouygues Telecom indicates that it has been informed by SFR and La Poste of differences between them regarding its planned acquisition of the virtual operator La Poste Telecom, now co-owned by La Poste and

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