CAC40: turns downwards, soaring interest rates cause concern

(CercleFinance.com) - The CAC40 has completely reversed course: starting from a zenith of 7,618Pts around 10H (+0.
8%), the CAC40 is now posting -0.2% towards 7,540... and retains a gain of +0.3% since January 1, while Frankfurt, Milan and Brussels are up +16%, the S&P500 +22% and the Nasdaq +23.5%.
'A year ago, the CAC40 began a bullish rally of almost 20% that would last until March. However, Christopher Dembik of Pictet Asset Management believes that a similar scenario is unlikely to occur this year.
The CAC40 is only up 10% compared with the end of October 2023, compared with +40% for the S&P and +45% for the Nasdaq (which flirted with its all-time high around 4pm on Monday).
Wall Street reopened with no real trend (S&P500 and Dow Jones posted zero scores, Nasdaq gained 0.1%), but FORD lost -8% due to a $1 billion loss in its electric vehicle division.

The session looks set to remain quiet on the macroeconomic data front - with only the Conference Board's US consumer confidence index due to be released later this afternoon - leaving the focus on corporate news.
But investors' attention is focused on a new surge in bond yields in the US, with the 10-year rising +4pts to 4.32% (4.34% at the day's high) and the 30-year peaking at 4.578% (4.56% now, or +3pts), its worst mark since July 3, 2023.
Things are no better in Europe, where the Bund is up +4.2pts to 2.327%, our OATs +6pts to 3.066% and Italian BTPs +5pts to 3.545%.

On the FOREX, the Dollar resumed its ascent, gaining +0.25% to 1.0785E, +0.4% against the Swiss Franc and +0.3% against the Yen.
The combined rise in interest rates and the Dollar still hasn't stopped the surge in gold prices, which set a new record at over 2.760/Oz, the first time this has happened in over 50 years!

On this front, Vivendi reports that its Supervisory Board has approved the resolutions to be submitted to its Combined General Meeting on December 9, to approve the demerger of Canal+, Havas and Louis Hachette Group.

TotalEnergies announces that TE H2, CIP and A.P. Møller Capital have signed an agreement for a large-scale project in the Kingdom of Morocco. Located near the Atlantic coast in the Guelmim-Oued Noun region, the 'Chbika' project aims to build 1 GW of onshore solar and wind power capacity.

OCP Group and Engie have signed a strategic partnership aimed at accelerating OCP Group's energy transition and actively contributing to that of the Kingdom of Morocco.

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