The Paris Stock Exchange should drop sharply at the opening – 05/12/2022 at 08:36

The Paris Stock Exchange was preparing to open sharply lower on Thursday, modeled on the negative closing of the American markets, little reassured by the rise in consumer prices in the United States.

The CAC 40 index futures contract dropped 2.10% around forty minutes before the opening of the session after two consecutive rebounds in recent days.

“The European indices should open lower in the wake of the closing of the American markets and the 5th consecutive session of the decline for the Dow Jones”, estimates John Plassard, investment specialist at Mirabaud.

“It looks like US inflation in April, although decelerating from the previous month, is still too high for investors to talk about the end of the peak in inflation,” he continues.

On Wednesday, European markets ended sharply higher despite a consumer price index (CPI) worse than expected for April in the United States but slightly slower than in March.

By contrast, Wall Street fell again as investors feared that persistently high inflation could prompt the US Federal Reserve to tighten even more in the coming months.

The CPI consumer price index rose 8.3% year-on-year in April, less than March’s 8.5% but more than the 8.1% expected by economists.

So-called core inflation, which excludes energy and food, even accelerated over one month, to 0.6% against 0.3% in March, at a level above analysts’ expectations .

During the session, investors will this time closely watch the first estimate of producer prices in the United States in April.

This major indicator “will provide an idea of ​​the proportion of inflation that will be passed on to the American consumer in the short term”, underlines Christopher Dembik, director of macroeconomic research at Saxo Bank.

Values ​​to follow

STMicroelectronics: the Franco-Italian manufacturer of electronic components is targeting an annual turnover of 20 billion dollars “and beyond” for the period 2025-2027, a very marked increase compared to its current sales.

Ubisoft: the video game giant saw its turnover for the staggered 2021-2022 financial year drop by 4.4% over one year, to 2.125 billion euros.

Veolia: the group which absorbed a large part of Suez in mid-January, recorded nearly 10 billion euros in activity for this first quarter in its new configuration and expresses its confidence despite the “current economic and geopolitical context” .

Bouygues Telecom: the operator achieved a turnover increase of 3% over one year in the first quarter of the 2022 financial year, to 1.796 billion euros.