CAC40: arbitrage in favor of W-Street continues, $ +0.5

(CercleFinance.com) - Wall Street may have posted its 5th positive opening - and as many potential records in the process - but the Paris stock market remains weighed down and is accelerating its decline: the CAC40 is down -2% to 7,275 pts, penalized in particular by the decline in the luxury goods sector, with -6% for Kering, -4.
2% for LVMH and -2.5% for Hermès.... and don't forget -2.8% for scheider and Legrand.
In Europe, indices held up better in Germany, with the DAX40 down -1.2% and the E-Stoxx50 down -1.3%, while on Wall Street, the Nasdaq gained 0.1% above 19,300, the S&P remained stable at 6,000 and the Dow Jones (-0.1%) held above 44,000.

It's hardly surprising that the Old Continent's indices are languishing: not only have they been battered lately by political uncertainty, but also by sluggish growth and disappointing corporate results.

In these conditions, investors should be keen to turn their attention to economic indicators over the coming weeks.
And it's not off to a good start: inflation in the eurozone came in at 2% annualized in October, after +1.7% in September, which seems to make a 50-point drop in December less likely.

The possibility of the ECB stepping up the pace of rate cuts is no longer part of the central scenario, in view of the differences of opinion that currently seem to prevail within the institution.

And on the growth front, in Germany, the ZEW index of investor sentiment is at half-mast, reflecting the impact of the political crisis caused by the break-up of the three-party coalition last week.

On the downside, the German inflation rate - measured as the change in the consumer price index (CPI) compared with the same month a year earlier - has been confirmed by Destatis at 2% for October 2024, compared with 1.6% the previous month.

On the bond front, US 10-year T-Bonds are up +3.7pts at around 4.377%, while German Bunds of the same maturity are up +0.5pts at 2.335%, and our OATs are down +2pts at 3.0990%.

Note the continuing surge in the dollar against the euro (-0.5%), which is flirting with 1.0600 (at 1.0605).
The strength of the dollar is causing the ounce of gold to fall back towards $2,600/Oz.

In French company news, Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), reports the successful launch of the Koreasat 6A telecommunications satellite aboard a SpaceX Falcon 9 rocket from Cape Canaveral, Florida.

Getlink announces that LeShuttle carried 147,919 passenger vehicles in October 2024, down 12% on the same month in 2023, which had nevertheless benefited from the impact of the Rugby World Cup.

Copyright (c) 2024 CercleFinance.com. All rights reserved.