(AOF) – European equity markets remain under pressure from the Fed. Investors were negatively surprised by the aggressive nature of the new projections (dot plots) for Fed Funds rates. These imply a 125 basis point hike by the end of the year and another 25 basis point tightening in 2023, to take the Fed Funds to 4.625%. The CAC 40 reduced its losses compared to the opening, but still yields 0.82% to 5,980 points. The EuroStoxx50 lost 0.62% to 3,470 points.
and Europe, Novartis lost almost 1% to 75.05 Swiss francs. Investors do not seem convinced for the time being by the new strategy of the pharmaceutical laboratory presented this morning. The Basel giant intends to become a “pure player” in medical innovation, ie new prescription treatments. It also intends to strengthen its presence in the United States where it intends to become one of the top five laboratories by 2027. Novartis also intends to be in the “top 3” of pharmaceutical groups in China while maintaining leading positions. in Germany and Japan.
A Paris, Veolia lost 0.88% to 21.41 euros against a CAC 40 down 0.8%. The world leader in environmental services has finally sold its British waste activities to Suez for two billion pounds, or around 2.3 billion euros. Veolia had planned to sell this branch, named Suez Recycling and Recovery UK to the Australian Macquarie, but Suez exercised its right of first refusal obtained during its merger with Veolia, thus pre-empting the sale. This transfer was required by the British competition authority (CMA) for the latter to validate the merger.
The macroeconomic figures of the day
In September, the business climate in France darkens again, reveals INSEE. The indicator that summarizes it, calculated from the responses of business leaders in the main market sectors, lost two points, as expected by economists. At 102, it nevertheless remains slightly above its long-term average (100). All major sectors of activity contributed to this deterioration, with the exception of construction.
The UK monetary policy decision will be unveiled at 1:00 p.m.
In the United States, the weekly jobless claims are expected at 2:30 p.m. and the index of leading indicators in August, at 4 p.m.
Around 12:00 p.m., the euro gained 0.31% to 0.9872 dollars.
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