CAC40: still down, but resilient in the face of interest rates

(CercleFinance.com) - The Paris Bourse continued the slide it began the previous day, in the wake of persistently depressed bond markets, with T-Bonds rocketing to over 4.
20% and OATs anchored above 3.00% (testing 3.05%).

However, the CAC40 considerably limited the damage, with a symbolic fall of 0.1% to 7,530.
Note the negative opening in New York, with -0.8% on the Dow Jones, -0.4% on the S&P500 and -0.2% on the Nasdaq.
The reality is that, despite long yields having recovered almost 50pts since the end of September, Wall Street is not letting up, and has been racking up record after record, until the last 48 hours.
The yield on the '2034' T-Bond has reached 4.22%, and the yield on the '30-year' more than 4.520%, i.e. +60pts since the opening on September 17, and +45pts since October 1 (closing).
This is the worst mark for the '30 yr' since July 25.

"Treasuries sold off aggressively across the curve, while equities weakened and the dollar extended its recent run", notes Michael Brown, Senior Research Strategist at Pepperstone.

He also notes that "the pace of earnings releases will pick up today, with a busy slate before the open, including defense giants Lockheed Martin and RTX, as well as classic barometer 3M".

"Participants, naturally, will expect the solid earnings performance seen so far to continue, as the S&P remains poised for its fifth consecutive quarter of year-on-year earnings growth", he continues.

Note the absence of any major figures on the agenda to justify the tension in rates at the start of the week.
Our OATs have just tested 3.074% this morning before narrowing the gap to +2Pts (3.029%), while Bunds are tightening by +1.2Pt to 2.291% from 2.333% around 1pm (the worst score since September 2 or July 29).

On the FOREX, the Dollar gained a further 0.12%, pushing the Euro back over the 1.0800 threshold.
Note the new record for the ounce of gold at $2,742/Oz (up $2 on Monday), while silver now stands at $34.6/Oz... and the +1.3% rebound in oil to $75 in London.


In Paris news, Eurofins Scientific reports sales growth of 6.7% to 5.14 billion euros for the first nine months of 2024, including organic growth of 5.2% for its core business (i.e. excluding Covid-19 revenues).

Interparfums reports third-quarter 2024 sales of €257.6 million, up 20% (+20.2% at constant exchange rates) on the same period in 2023, 'reflecting continued strong momentum for the group's flagship brands'.

Wendel states that it has entered into a definitive partnership agreement to acquire 75% of Monroe Capital, a transaction that 'considerably broadens its asset management platform, and strengthens its growth and recurring cash generation profile'.

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