Published January 5, 2023, 4:16 pm
The Paris Stock Exchange is calmly stabilizing after three hikes in a row in the first three sessions of the year, resisting the fallout from Wall Street. The American post is reacting to ongoing tensions on the labor market, which is strengthening the Federal Reserve in its fight against inflation, especially as at least one of its officials sees interest rate spikes above 5%.
Esther George believes the Fed will need to continue its monetary tightening for some time to come. In an interview with CNBC, the president of the Kansas City broadcaster said the fed funds rate should be raised to more than 5% and maintained at that level for much of next year. Jobless claims fell 19,000 to 204,000 (225,000 expected) in the US last week, while private sector job creations posted a surprise rise to 235,000 in December, up from 182,000 in November and 150,000 set out in the consensus formed by Bloomberg.
Shortly after 4pm, the Bedroom 40 stable at 6,781.71 points (+0.08%) on a turnover of 1.6 billion euro. In New York, the Dow Jones and the Nasdaq Composite fell by more than 1%.
In the minutes of its December meeting released last night, the Fed’s monetary policy committee said its members intend to slow the pace of rate hikes by continuing to fight inflation, but without putting too much pressure on the economy. They are also waiting to see more tangible signs that suggest inflation is under control. Afraid of being misunderstood, the FOMC warned against rate cut expectations this year, arguing that ” unjustified easing of financial conditions it would complicate efforts to restore price stability.
Air France-KLM powered by Ryanair
Sanofi fell 2% while Jefferies went from “positive” to “neutral” on European pharmacyeven if it remains in “purchase” on the title of the French group.
Axa lost 1.3% as did the Stoxx 600 insurance index, which shows the largest sector decline in Europe with a 1.1% drop.
Interparfums gains 3.6% The licensed perfume maker has it again raised its revenue and operating margin forecast for 2022.
Air France-KLM appreciated by 2.7% on the back of the nearly 7% increase. Ryanair in Dublin after raising its full-year earnings forecast thanks to a strong holiday season.