Once again, Cac 40 weighted by Sanofi, which is down 20% in three days, market news

The initial rise made the Cac 40 “pschitt”, again saddled with its heavy weight and fifth index cap, Sanofi. At midday, the main index lost 0.28% to 6,506.24 points. The effect of the pharmaceutical laboratory decreases, still approximately 12%, reaching 20% ​​within three sessions.

At the origin of this stock hurricane, a worldwide hiring suspension was announced Tuesday as part of trials of the drug tolebrutinib in multiple sclerosis. This led the UBS Research Office to review the case and decide not to be a purchaser of the property. In particular, investors seem to remember that Sanofi will soon face lawsuits in several US courts, including the Illinois case within a few weeks over allegations that the gastro-intestinal drug Zantac can cause several forms of cancer or other diseases.

It is not enough, therefore, to take advantage of once again well-oriented US futures, 0.2% to 0.4% according to indices despite its strong advance the day before (+1.6% for the Dow, +2.8% for the Nasdaq). Operators remain comfortable after publishing slightly more accommodative inflation figures than had been unanimously expected, at 8.5% in one year and 5.9% in “core” data, giving hope that the Fed will be less aggressive in September at its next monetary policy meeting.

Do you want to lower prices in 2023? “unrealistic”

The slowdown in CPI in July is likely to be a huge relief for the Fed, especially since the Fed has long insisted that inflation was temporary, which it wasn’t.last night Nancy Davis, of Quadratic Capital Management, estimated to CNBC. If inflation continues to fall, the Federal Reserve may begin to slow the pace of its monetary tightening. »

Chicago Fed President Charles Evans was quick to welcome the numbers presented on Wednesday, declaring that consumer prices stagnated in July (+0% in one month versus +0.2% unanimously expected and above all +1.3% in June) as the first stat “Positive” inflation since the Fed began tightening its monetary policy. However, he sees that prices will continue to rise in 2023, contrary to the most optimistic (also). His colleague from Minneapolis, Neil Kashkari, who was among the more “doves” until some time ago, considers it would be completely unrealistic to cut prices next year.

Double date in September

At Pimco, we are also on the alert. With lower energy prices, June is likely to be the peak year for year-over-year general inflation, note economists Tiffany Wilding and Alison Boxer. However, year-over-year core inflation is likely to pick up in August, and is unlikely to peak until September. Because the ingredients behind the calm in July in essence – Air tickets and hotels – tend to be more volatile, while the most ‘entrenched’ ones (rents/owner equivalent rent) have remained constant, at 5.5% and 3.5% respectively over one year for 2022 and 2023. » Double date in September, for the Federal Reserve FOMC and Consumer Prices for August, which will be presented just before this meeting…Pimco continues to expect interest rates to rise by 0.75 basis points in the next month, given continued stability. of core inflation.

Thursday will be a chance to take a look at the other price numbers, this time on production. It is still supposed to slow in July to 10.4% in one year, down from 11.3% in June. Also following, at 2:30 PM, weekly jobless claims, expected to be roughly flat around 265,000.

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