More good news on the US inflation front, the Cac 40 remains unchanged but still gains 17% on the year

Posted on December 22, 2023 at 5:44 pmUpdated December 22, 2023 at 5:48 p.m

This is a welcome slowdown, but one that has not impressed the financial markets. In November, core PCE, the US Federal Reserve’s preferred measure of inflation, rose 0.1% over the month and 3.2% over the year, very slightly below market expectations (+0 .2% and +3.3% estimated). Including volatile food and energy prices, the headline PCE index fell 0.1% on the month in November and rose just 2.6% from a year ago, after peaking at more than 7% in mid-2022. This is the first monthly decline since April 2020, according to Fed data.

For analysts, the numbers confirm that inflation is continuing to fall toward the Fed’s medium-term target of 2%. ” The Monetary Policy Committee is not yet ready to declare victory over inflation, but the outlook is much better than it was a few months ago. writes Gus Faucher, chief economist of PNC Financial Services, relayed by the American financial information server CNBC. Slowing Core Inflation Opens Door to Federal Funds Rate Cut in 2024; the timing will depend on key PCE data in the coming months. » For Andrew Hunter of Capital Economics, the peak of post-pandemic inflation is now behind us. He continues to believe the Fed will begin cutting rates in March and will cut rates by a total of just over 175 basis points next year.

In Paris, Cac 40 was left on its feet after the statistics, which were nevertheless the most important of the day. In the end, the index symbolically lost 0.03% to 7,568.82 points in a limited trading volume of 1.9 billion euros. It still gained 16.92% year-to-date. Are the operators already preparing for the traditional confectioners’ truce? Or are they numbed by the “it’s all in the prices” syndrome and dare not go further, at a time when the Cac 40 is very close to its all-time high, reaching 7,653.99 points on Thursday, December 14? Across the Atlantic, Wall Street is gaining ground a little more. The three major indexes are on track to post their eighth consecutive positive week, the first for the S&P 500 since 2017 and the first since 2019 for the Dow Jones.

Cold shower for Nike

In terms of value, sports equipment makers, whether listed in Europe or the United States, have stumbled as the Beaverton giant faces what it calls “ a turning point in driving more profitable growth At the end of the second quarter of its 2023-24 fiscal year, which ended Nov. 30, the group reported net income of $1.58 billion, or $1.03 per share, certainly higher than the consensus estimate of 84 cents, but its turnover only increased. 1% over the year to $13.4 billion. Even down 1% at constant currencies. On Wall Street, Nike fell 10.5%. In Frankfurt, its competitors Adidas and Puma fell 5 .3% and 6.5% respectively, while across the Atlantic, Lululemon and Foot Locker, its top sellers, fell 0.9% and 5.5%, respectively.

Also in the red, Ubisoft lost 1.45% as Tencent and NetEase lost in Hong Kong (-12% and -25%). Chinese authorities have introduced a series of measures aimed at curbing spending and controlling the content of online games. ” It is difficult to quantify the impact at this stage, but the government’s plan raises concerns about the monetization prospects of gaming companies.commented Daisy Li, fund manager at EFG Asset Management. With these restrictions, player behavior could change and the number of daily active users could be affected “.

Finally, Christmas was early for Nexity (+10.75%). Oddo BHF raised its view on the developer from “underperform” to “neutral” due to the expected stabilization of bookings and the continued deleveraging of the group. In addition, Nexity has entered into exclusive negotiations to sell 100% of its Personal Services business to UK asset manager Bridgepoint for an enterprise value of €440m.

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