The star CAC 40 index fell 54.54 points to 6,031.48 points, after losing more than 1% at the very start of the session.

The day before, it had increased by 0.64%.

"Caution remains in order on the markets", which could experience a significant and brutal phase of fall, according to Maximilien Monot, portfolio manager of Monocle AM.

Especially since "the scenario of stagflation is taking shape more and more" according to the analyst.

In the United States, gross domestic product (GDP) fell by 1.6% at an annualized rate in the first quarter, slightly more than what was initially announced (-1.4% in April).

The steeper contraction in GDP from previous estimates "reflects a downward revision to personal consumption expenditure and federal government spending," the Commerce Department said in a statement.

In Germany, price increases slowed in June for the first time since January, reaching 7.6% year on year.

This development is mainly due to the temporary measures put in place by the government to reduce household energy bills and failed to reassure the markets.

In Spain, the rise in prices stood at 10.2% year on year in June, well above forecasts (9.2%) and the increase over one year in May (8.7%).

On Thursday, an inflation indicator closely scrutinized by the American central bank, the PCE indicator, will be published.

Maximilien Monot does not expect "very big movement in the days to come because we are going to enter the second quarter results season".

© 2022 AFP