CAC40: frozen below 7,500pts, rates remain very depressed

(CercleFinance.com) - The Paris Bourse, which had initially fallen back, returned to the green at around 10 a.
m., then gradually accelerated, unopposed, until around 2:30 p.m.
The day's score was then fixed at +0.6% (just below the 7,500Pts mark) and remains the same with 40Mn to go, and in a totally deserted market (special national holiday of mourning in honor of Jimmy Carter) with barely 1,150MnsE traded in the space of 8 hours.

The CAC40 was boosted by Teleperformance (+3.6%), ahead of Bureau Veritas (+2%).
No heavyweights were in the forefront, except for LVMH (+2%), but this is of little importance, as there were no declines of more than 1.5%, apart from Renault (-2%).

The automotive sector was at half-mast, with Michelin (-1.6%) and Stellantis (-0.8%).

With 11 days to go before Donald Trump's inauguration, concerns remain high about a new trade war.

According to CNN, Donald Trump intends to declare a national economic emergency in order to quickly implement his plan for "universal tariffs" to reduce the country's trade deficit... with carte blanche to act without needing Congressional approval.

It should be noted that the euro's recent decline could also stimulate the trend, offering opportunities to position oneself in the most export-oriented stocks.

The general climate remains unfavorable to the single currency, with political uncertainty and sluggish growth, two factors which argue in favor of additional monetary support from the ECB.

On the foreign exchange market, the euro lost a little ground (-0.2%), dropping back to just below $1.03000 after hitting a new three-year low against the greenback last week, at 1.0265.

The publication of the minutes of the Federal Reserve's latest monetary policy meeting had no impact on the session.

According to the minutes, the central bank's decision-makers believe that the risks surrounding a reawakening of inflation have increased, justifying a cautious approach to monetary policy decisions over the coming quarters.

On the statistics front, following a 0.4% decline in October compared with the previous month (revised from an initial estimate of -1%), German industrial production rebounded by 1.5% in November, according to Destatis CVS-CJO data.

In addition, the German foreign trade balance posted a surplus of 19.7 billion euros in November, compared with a trade surplus of 13.4 billion recorded the previous month, according to Destatis CVS-CJO data.

After rising sharply yesterday, benchmark US government bond yields stabilized at the end of the session, with 10-year paper easing slightly to 4.69%.

The movement was similar on the European market, where the yield on the ten-year German Bund gained +1pt to 2.525%, while the French OAT for the same maturity widened by +2.5pts to 3.383%, giving a spread of 86 basis points.

Finally, in London, the price of oil (+0.9%) returned to the $77 mark.

In French company news, Airbus reports that it has received a firm order from Taiwan's Starlux Airlines for five additional A350F freighters, doubling the initial order placed last year for this aircraft under development.

Sanofi announces that the new subcutaneous formulation of its Sarclisa has met the primary endpoints of the Phase III IRAKLIA study in relapsed or refractory multiple myeloma.


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