CAC40: limited movements before the Wall Street opening

(CercleFinance.com) - Movements are limited this morning in Paris, where the CAC40 grabs 0.
1% around 7655 points, driven by Teleperformance (+2%) and Carrefour (+1.1%), but held back by Renault (-1.6%) and Crédit Agricole (-1%).

Investors seem to be adopting a wait-and-see stance ahead of the re-opening of New York, the direction of which could give direction to the markets, especially as the day will be rather sparse in statistics.

The only data to be released in the afternoon will be the ISM manufacturing index for the US, which is expected to have remained in contraction territory in August.

More important dates will mark the rest of the week, starting with Friday's release of the monthly US employment report, which will be examined at the wolf.

"These are the last figures concerning this key segment of the US economy before the Fed meeting scheduled for mid-September", points out Christopher Dembik, investment strategy advisor at Pictet AM.

Barring any last-minute surprises, the statistics should confirm the possibility of a 25 basis point hike", the analyst believes.

At this stage, futures contracts on the New York Stock Exchange's benchmark indices point to a recovery in negative territory.

The downturn in US futures can be explained in particular by the fact that government bond yields have started to rise again, with the 10-year US bond back above 3.91%, a two-week high.

While the session is likely to be livelier than the previous day, whether the European markets can continue their rebound will largely depend on how the US equity markets evolve.

Analysts point out that the autumn months are generally complicated for equities, a phenomenon that is likely to be heightened this year by the prospect of the hotly contested US presidential election in November.

Although a resurgence in volatility is still possible, the trend remains bullish, given the resilience of US growth and, above all, the more accommodative approach adopted by the Fed, according to strategists.

"Historically, the start of a rate-cutting cycle is favorable for equities when the economy is not in recession", points out Angelo Kourkafas, at Edward Jones.

The financial markets are therefore entering a new phase, in which the strength of economic activity, and employment in particular, will take precedence over inflation figures, which are now considered secondary.

'The question is no longer 'when will the pivot be?Clément Inbona, fund manager at La Financière de l'Echiquier, concludes:

"The central banks now have their finger on the trigger, and it's up to investors to anticipate their rate of fire.

In other French company news, TotalEnergies announces that it has signed an agreement with Adani Green Energy Limited (AGEL) to create a new 50/50 joint venture with a portfolio of 1,150 MWac (1,575 MWp) located in Khavda, in the Indian state of Gujarat.

Legrand announces two new acquisitions, UPSistemas in Colombia and APP (Australian Plastic Profiles) in Australia, bringing to seven the number of operations announced this year, for annualized sales of nearly 350 million euros.

Finally, EDF announced on Monday evening that it had revised upwards its estimate for nuclear generation in France in 2024, now targeting production of between 340 and 360 terawatt-hours, compared with an initial forecast of between 315 and 345 TWh.

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