CAC40: back in the black with symbolic easing of interest rates

(CercleFinance.com) - The Paris Bourse is coming out of the red, thanks to a very slight improvement (the first in 1 week) in bond markets, which were literally plunging until mid-day, with T-Bonds rocketing to over 4.
20% and OATs anchored above 3.00% (testing a zenith at 3.075%).
A few yield points have been erased since 1 p.m., and investors are breathing a little easier.

The CAC40 is now posting a symbolic gain of 0.1% to 7,540, while the E-Stoxx50 is up to 4,945.
The US indices in New York are up, with the Dow Jones up from -0.8% to -0.3%, the S&P500 posting -0.2% and the Nasdaq-100 returning to equilibrium thanks to Nvidia and a new record high of $144 ($3,525 billion in 'capi' versus $3,550 for Apple).
The upturn in bond prices is welcome, but the reality is that, despite long yields having recovered almost 50 basis points since the end of September, Wall Street has been relentless and has set record after record, right up until the last 48 hours.
The yield on the '2034' T-Bond reached 4.225%, while the yield on the '30 yr' was over 4.520%, i.e. +60pts since the opening on September 17, and +45pts since October 1 (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 list ahead of the open, including defense giants Lockheed Martin and RTX, as well as classic barometer 3M".

Participants, naturally, will expect the strong 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 are down +3.8pts to 3.049%, while Bunds are up +3.15pts to 2.311% (compared with 2.333% at around 1pm, the worst score since September 2 or July 29).

On the FOREX, the Dollar is up a further 0.12%, pushing the Euro back towards 1.0800.
Note the new record for the ounce of gold at $2,743/Oz (up $3 on Monday), while silver now stands at $34.65/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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