The Paris Stock Exchange is preparing for the week’s highlights: June inflation in the US, morning meeting

Yesterday, the Paris Stock Exchange managed to erase its losses on Monday thanks to the sharp drop in oil prices at the end of the session. But the trend should reverse this morning pending the June inflation figures in the US. In Germany, consumer price inflation was confirmed at 8.2% y/y last month.

On Wall Street, the S&P 500 and Nasdaq Composite fell nearly 1% on Tuesday after a choppy session, but fears of slowing growth and an aggressive stance on monetary policy took back control. The International Monetary Fund also revised its growth forecast for the US economy to 2.3% this year, from 2.9% estimated in June.

The US Department of Labor will release consumer price statistics for the last month at 2:30 pm. It should have increased 8.8% year-on-year, a new 40-year high, after 8.6% in May. Some analysts, including those at UBS, go so far as to predict a 9% increase, mainly due to higher gasoline and used vehicle prices.

75 or 100 basis points?

Several US Federal Reserve officials recently called for a 75 basis point hike in the federal funds rate in July in an effort to rein in inflation, after a hike of the same size the previous month. But a higher than expected number could fuel expectations for a 100 basis point rise.

More advances in consumer prices today will certainly bolster the Fed’s hawks, push the dollar higher and stocks lower.says Obek Ozkardiskaya, an analyst at Swissquote. On the other hand, a weaker-than-expected number could revive hopes of a soft landing for the US economy and lead to a widely-desired pause in the dollar’s rally, thus rebounding stocks ahead of the big hits. US banks don’t publish their quarterly results on Thursday. However, add that Either way, market volatility should remain high and visibility limited, especially if summer weakness in trading volumes is factored into the mix. “.

In the foreign exchange market, the euro against the dollar approached parity at 1.00005 ahead of a jump in the single currency, which is trading around $1.0030 this morning. But the drop to less than $1, which would be the first since 2002, is only a matter of time, posing a real problem for the European Central Bank by increasing the prices of energy and other raw materials, thus boosting inflation.

Strategic partnership between Renault and Vitesco

In Asia, the Korean and New Zealand central banks raised interest rates by 50 basis points this morning to 2.25% and 2.5%, respectively. However, there is good news from China, where exports increased 13.2% year-on-year in the first half and imports 4.8%. A better-than-expected performance could temporarily ease fears of a slowdown caused by the risks of new health restrictions.

Renault It announced that it has signed a strategic partnership with the German company Vitesco Technologies for the development of power electronics in the mechanization of electric and hybrid vehicles.

Among the analyst’s notes, Jefferies began to cover Feralia To “buy” with a target of 37 euros. Barclays raised its recommendation for amondy From “line weight” to “overweight” with the target price reduced from 77 to 70 euros.

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