This new warning from the chip manufacturers was taken very seriously on the stock market
The Paris Stock Exchange, which had been sluggish for most of the morning, was slightly lower at the close on the back of a somewhat feverish Wall Street, particularly the Nasdaq, which was again weighted by the semiconductor sector following a fresh warning in the industry. To NVIDIAthe manufacturer of electronic components micron said its earnings for the quarter could be lower than expected due to a slowdown in demand, particularly for PCs, and supply chain difficulties. The action lost more than 5%. Nvidia was down nearly 3% on Monday, even after warnings about its revenue guidance, and extended its decline on Tuesday (-3.8%). Bad industry news also weighing on Infineon in Germany (-4.5%) and STMicroelectronics in Paris (-5.2%).
” I think these are two big players that investors have said are best positioned to overcome supply chain issues.notes Ed Moya, senior market analyst at Oanda. The market fears that this will really weigh on the technology “.
Finally the bedroom 40 lost 0.53% to 6,490 points with a trading volume of 2.6 billion euros. On Wall Street, the Dow Jones symbolically, however, the 0.1% gives up Nasdaq lose 1.1%.
In the background also the lack of initiative of the operators on the eve of the very important inflation statistics for the month of July in the United States. More specifically, at 2:30 p.m., the latest consumer price figures will be presented in the United States, which is expected to fall slightly, with inflation falling from 9.1% to 8.7% over a year through June . A level that would remain elevated anyway, given that the relative reassurance would be partly explained by a more than 10% drop in energy prices.
50…75…100 basis points?
In any case, the statistics will influence the behavior of the Fed in its aggressiveness when raising interest rates in September. Since Friday and the announcement of more than 500,000 job creations in July in the United States, twice as many as expected, investors have revised their expectations and again expect a gain of 75 basis points (vs. just 50 basis points). before publication of the statistics). Citi economists are not ruling out a 100 basis point hike, which would bring the Fed’s interest rate range to a 3.25-3.5% range from 0% in March.
” The next 30 hours could be the calm before the storm ‘ wrote Deutsche Bank strategist Jim Reid this morning. However, he recalled yesterday: ” there was good news on the inflation front, found in the results of the New York Fed’s Consumer Price Expectation Survey. ” Their inflation expectations were falling over the one-year, three-year and five-year horizons. That’s sweet music to the Fed’s ears, because if this trend continues, it means the Fed may not have to be as aggressive in raising interest rates, as one of its major fears is that expectations of higher inflation rates will become a self-fulfilling prophecy lead to real inflation as firms adjust prices and workers negotiate wages accordingly. »
UBS no longer buys Sanofi
On the value side Sanofi lost 1.4% following the announcement of a halt to recruitment for clinical trials of tolebrunitib, a treatment for multiple sclerosis. UBS has also downgraded the laboratory’s title from “buy” to “neutral”.
Total Energieshowever, rose 2.1% as Russian oil supplies to three European countries, Hungary, Slovakia and the Czech Republic were suspended. The barrel of Brent returned to $98 before retreating a bit ($96.30 at the Paris end).
In the telecommunications industry Bouygues and orange also placed on the Cac 40 podium, up 1.2%.