CAC40: improvement in interest rates supports rebound, WStreet stable

(CercleFinance.com) - The Paris Bourse achieves its best score of the week with +1.
3%.
The CAC40 is back above 7,300, which few traders were anticipating this morning.

The Euro Stoxx50 climbs on much higher bases (+1.9%) thanks to +6% for the giant ASML and +5.5% for Siémens, followed by +4.6% for Kering.

This rebound came at an opportune time on the eve of the "3 Witches" session, enabling stock markets to return to the green for the week (+0.5%) and limit the damage caused over the past month.

Still no consolidation on Wall Street, with indexes oscillating within narrow margins since Monday, in "algorithmic straitjacket" mode, as if the aim were to keep US indies at their zenith before switching to the December deadline.
No trend across the Atlantic for the 3rd session in a row: the Dow Jones remains stable, the S&P500 and the Nasdaq are down by -0.1% to -0.2%, and everything could turn to the upside tonight at 8pm if the FED's statement manages to dispel fears of inflation and confirms the robustness of the economy.

We can't rule out a rise from 20:01 to 22:00 and new record highs if rates finally ease, which isn't the case in the US after the publication of 2 rather reassuring statistics: the Labor Department reports that US producer prices rose by a predicted 0.2% in October compared with the previous month, and by 0.3% excluding food, energy and commercial services.

Expressed as an annual variation, the rise in US producer prices accelerated last month compared to September, by 0.5 points to 2.4% in unadjusted data and by 0.2 points to 3.5% excluding food, energy and commercial services.
The same Labor Department announced that 217.000 new jobless claims in the US last week, down by 4,000 on the week of November 4.

The four-week moving average - more representative of the underlying trend - came in at 221,000, down by 6,250 on the previous week.

Lastly, the number of people receiving regular benefits fell by 11,000 to 1,873,000 in the week to October 28, the most recent period available for this statistic.
It should be remembered that European markets have recently been penalized by concerns about the dynamism of activity, and the announcement of the latest growth figures for the euro zone is unlikely to reassure them.
In Europe, GDP rose by 0.4% in the third quarter, thanks to the effect of the JOs in France and a catch-up in consumption in Germany, two phenomena which are unlikely to last.

Due to the weak performance of France and especially Germany, industrial production fell by -2% in the EU in September.

As for the 'minutes' of the ECB's latest meeting, they are likely to record lower-than-expected inflation and downside risks to activity, without however showing that a 50bp rate cut by the institution in December constitutes the central scenario for activity.
The "fact of the day" was the euro's intraday rebound, from 1.0497 to 1.0565/70 (unchanged), which seems to mark the end of the greenback's rally that began 3% lower last Tuesday.

On the bond front, 10-year T-Bonds eased by 2.8pts to 4.425% (from Thursday's high of 4.4880%), German Bunds also improved by -3.7pts to 2.35% and our OATs by -5pts to 3.0950%, Italian BTPs by -7pts to 3.563%.

In French company news, Thales presents new targets for the period 2024-28, including average annual organic growth (AAGR) in sales of +5-7%, 'driven by broad-based growth across all its businesses'.

Technip Energies reports that, in partnership with SBM Offshore, it has won a contract described as 'major' from TotalEnergies for the GranMorgu floating production, storage and offloading (FPSO) unit in Suriname.

Schneider Electric is to increase its stake in Planon so as to hold an 80% majority share in the French developer of management software for intelligent buildings, the latter announced on Thursday.

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