CAC 40: the stock market bets on a slowdown in inflation in the US, China for support

On the stock exchange in Paris, the CAC 40 remains cautious, while investors are convinced that the consumer price index in the United States, expected on Thursday, will testify to a further slowdown in inflation in December. The CAC 40 ended down 0.55% on Tuesday, having taken profits after starting the year with a bang. “European indices should open higher this morning following the close in New York on the eve of US inflation figures for December, which could show another deceleration, the 6th in a row,” predicts John Plassard, investment specialist at Mirabaud. “The reopening of China is of course the icing on the cake,” he adds.

The second world economy on Sunday lifted the quarantine requirement for travelers from abroad, ending almost three years of isolation to fight the coronavirus. Investors believe this reopening should have a strong positive impact on growth, although this new boost in activity could worsen inflation. In France, too, market operators could cling to good news, as the Banque de France had indicated on Wednesday that the French economy continued to hold firm and that it should register a stabilization in January after little growth at the end of 2022. The York Stock Exchange ended a mixed session higher on Tuesday, with investors remaining on hold ahead of the December US consumer price index (CPI) due for release on Thursday.

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Analysts expect prices to stagnate over a month and decline over a year, which would allay fears of further monetary policy tightening by the US central bank (Fed). On Tuesday, US central bank chief Jerome Powell refrained from commenting on the outlook for monetary policy in a speech in Stockholm on the independence of central banks. He merely acknowledged that “restoring price stability (…) may require measures that are unpopular in the short term” with rising interest rates “to slow down the economy”.

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The values ​​to follow

LVMH: Delphine Arnault, daughter of Bernard Arnault, has been named CEO of Christian Dior Couture, while Pietro Beccari, who held the position, will take the helm of Louis Vuitton, the world’s leading luxury brand, the luxury giant announced Wednesday.

Airbus: the European aeronautics group delivered 661 aircraft in 2022, far short of the 720 originally planned, due to difficulties for suppliers to ramp up, and recorded 820 net orders over the past year.

Thales: the defense and technology group said on Tuesday it was not interested in taking a stake in Evidian, the company Atos is set to set up to house its cybersecurity operations in particular.

vinci: the construction group, through its subsidiary Cobra IS, has won a new offshore wind power contract for a colossal amount of more than 4 billion euros to design, build and install two offshore energy conversion platform wind turbines in the North Sea off the coast of Germany.

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