Catapult effect on the Paris Stock Exchange! The Cac 40, which contented itself with munching a few fractions until mid-afternoon, took off suddenly, reacting to a statistic on American real estate which, however, has left operators impassive in recent months.
For the first time, house prices calculated by the S&P CoreLogic Case-Shiller Index fell 1.3% in the 20 major cities surveyed month-over-month in August. Although they remain higher still much higher than they were a year ago. It is their biggest decline since 2009 … In detail, San Francisco, Seattle and San Diego recorded the largest falls on a monthly basis, of 4.3%, 3.9% and 2.8% respectively. In one year, the rise in house prices thus reduces from 15.6% to 13.1%, the largest difference observed in these 35 years of statistical history, Diana Olick points out for CNBC.
A delayed effect on inflation
For Bill Adams, economist of Comerica, whose observations are also reported by the American channel, the correction of real estate prices will constitute a ” big brake on GDP in 2023, which should slow inflation. Real residential investment is expected to drop 18% in 2023 this year. ” Property prices fuel housing costs in the inflation indices that the Powered target with a delay of several quarters, so that the fall in prices in mid-2022 will start to slow inflation in 2023 “Says Bill Adams.
This was enough for investors to judge that the US Federal Reserve’s multiple tightening of vines was starting to pay off, which would gradually ease the pressure on equity markets. If it seems certain that the Fed will raise its rate once again Fed-funds By 75 basis points on November 2, San Francisco branch president Mary Daly estimated late last week that if high inflation had ” very difficult “a break in monetary tightening”, it was time to start to discuss a slowdown. More precisely, the Wall Street newspaper he said for his part that the central bank could discuss, at its next meeting, a reduction in the magnitude of the increase in the cost of money in December.
At the close, the Cac 40 jumped 1.94%, to 6,250.55 points, with a trading volume of 3.3 billion euros. In New York, the indices, including future they were down before the statistics were published, they are clearly in green. the Dow Jones takes 0.8%, the S & P500 advance of 1.2% and the Nasdaq composite 1.8%, a few hours before the presentation by the two Gafams Microsoft and Alphabet of their accounts for the third quarter. The yield on 10-year bonds fell 17 basis points to 4.06%.
Star of the day by Air Liquide
In Paris, quarterly revenue announcements continued. In this exercise it is Liquid air who came out the best. The share of the industrial gases group grew by more than 6%, by far at the top of the Cac 40. The activity grew by 8.3% like for like, ie excluding the exchange rate and, above all in the current context, energy prices, the spike of which has been particularly well managed.
In reverse, Remy Cointreau it lost 4.6%. The premium spirits group is planning a slower growth in sales and profits with a return to normal in terms of consumption after two years ” awesome “.