CAC40: towards 7500Pts after several statistics

(CercleFinance.com) - The Paris stock market gained 0.
6%, around 7480 points, driven in particular by Teleperformance (+3.5%) and Renault (+3.2%) in the wake of the ECB's announcement that, as expected, it had cut rates by a quarter point, while paving the way for further easing of its monetary policy.

The ECB's rate-cutting cycle could accelerate if growth continues to disappoint", says David Zahn, Franklin Templeton's head of fixed income for Europe.

The markets are now awaiting the Fed's decision on whether to cut rates next week. Some press reports have even hinted at a possible 50 basis point cut.

Against this backdrop, the Dow Jones gained 0.6% yesterday, behind the S&P 500 (+0.8%) and the Nasdaq (+1%), the latter having been further helped by the continued recovery of Nvidia (+1.8%).

Good news for the markets: Wall Street is also heading for a positive week, proving that even disappointing inflation figures no longer scare investors.

In the eurozone, investors this morning took note of the publication of industrial production figures for July, giving a first glimpse of the growth to be expected in the region over the third quarter.

Seasonally-adjusted industrial production fell by 0.3% in the eurozone in July 2024 and by 0.1% in the EU, compared with June 2024, according to estimates from Eurostat, the European Union's statistical office.

Also on the statistics front, import prices fell by 0.3% (or -0.1% excluding oil) in the United States in August, after rising by 0.1% the previous month. Over 12 months to the end of August, import prices rose by 0.8%.

Finally, in France, the consumer price index (CPI) rose by 0.5% over one month in August 2024, according to Insee, after +0.2% in July.

On the interest rate market, the yield on the ten-year German Bund stood at 2.14%, while US T-Bonds with the same maturity stagnated at around 3.65%.

The euro continues to appreciate against the dollar, returning to close to $1.109/E (+0.2%).

After their recent plunge the previous day, crude oil prices rebound on the back of a calmer climate once again settling over the equity markets, with Brent crude up 1% at $73.1/barrel.

Gold, meanwhile, continues to climb, up 2.7% to $2,580 an ounce.

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