U.S. inflation knocks out CAC 40

trend

The market has been waiting worried about US inflation in May. Unfortunately, the consumer price index rose 1% from the previous month to 0.7% on the FactSet consensus, and US inflation rose to 8.6% in a year from the 8.2% consensus and 8.3% in April. So the news is bad.

The ECB’s new inflation forecast is sufficient to boost the European stock market, which was already healthy the day before, and it will certainly have to accelerate the next rise in key rates. On arrival, CAC 40 lost 6,187 points (-4.3% in a week), down 2.69% after falling four times in a row.

Therefore, the low inflation rate in the United States revealed today further complicates the Fed’s mission and has entered a cycle of accelerated monetary tightening with a 50 basis point rate hike. The central bank of the United States has no room to move, as it has to deal with a particularly unfavorable environment after keeping interest rates low for too long. In these situations, the risk of a more pronounced economic slowdown rises sharply. FedWatch data show a potential cumulative rate hike of 215 basis points in 2022, with the federal funds rate approaching 3% at the end of December.

Value to rise

* DBV Technologies rose another 14% after announcing a total of US $ 194 million (equivalent to 181 ME) private equity placement (PIPE) financing with the sale of 32,855.669 common and 28,276,331 shares. It is now 4.81 euros. -Funded warrants. In the last five sessions, the title progress is close to 80%. Common stock is subscribed by investors at a pre-funded price of € 3 (equivalent to US $ 3.22) per common stock, and pre-funded warrants are subscribed at a pre-funded price of € 2.90 (equivalent to $ 3.11) per share. To do. Pre-funded warrant. Equivalent to the price per share of common stock minus the exercise price of € 0.10 per pre-funded warrant. Total revenue from PIPE funding before deducting costs associated with private placements totals approximately $ 194 million. Settlement delivery of PIPE loans must be made on June 13, 2022, in accordance with normal conditions.

* Ipsos is stable at € 46.15 as the Group announced on Friday 10 June that it has appointed Dan Lévy as Group Chief Financial Officer. After being trained as an economist and statistician, Dan Lévy spent the first part of his career from 2001 to 2010 in economic, financial, and administrative functions at the Treasury, Treasury, and Budget Department. He joined Societe Generale in 2010 and has held various positions to this day.

* There is no increase in CAC 40 shares.

Drop value

* Bank stocks have been hit and rising bond rates (almost 2% in Friday’s 10-year OAT) are now very much overshadowed by market declines. Crédit Agricole and Societe Generale fell by about 6% and BNP Paribas fell by 5% to € 48.6.

* Saint-Gobain will return nearly 5% to 52.7 euros this Friday, but Berenberg advises to “maintain” the glass group with an adjusted target of 62 to 60 euros.

* Legrand is down 2% to € 76, but Citigroup has lowered its title target from € 97 to € 85. For Schneider (-2.8% to 123.5 euros), given the evolution of the international context, brokers are currently targeting 139 euros against 154 euros. Jeffreys adjusted his goal at Legrand from € 104 to € 92 while still purchasing the file.

* Teleperformance fell 1.2% to € 296. Morgan Stanley has adjusted its price target from € 440 to € 420.

* Rubis produces 2% to 27.9 euros. Dividends of € 1.86 per common stock and € 0.93 per preferred stock will be paid on June 14th with the separation of the coupon and June 16th. Management reminded the General Assembly of its vision for medium- to long-term group development. Bruno Krief, Chief Financial Officer, announced that the first quarter of 2022 started well with a gross profit of 7% in distribution and 19% in transactions / shipments (support and services subsegments). “The start of the second quarter is in line with the increase observed in the first quarter, which is a good indication of a significant increase in performance (with a certain structure) throughout the first half,” the manager added. rice field.