CAC40: end of quarter marred by fall in auto sector

(CercleFinance.com) - There's no denying the heaviness 1/2 of the way to the close, in this final session of September and the 3rd quarter.

Many stock markets are missing the last step, notably Tokyo this morning, which plunged -4.8%, weighed down by the automotive and real estate sectors, to regain last Wednesday's levels.

At -1.8% to 7,650, the CAC40 erased almost half of last week's gains (+3.8%) against a backdrop of geopolitical uncertainties rekindled by the death of Hezbollah's leader over the weekend, followed by continued bombing in Lebanon, in the midst of civilian populations, including in northern Lebanon.

The CAC40 thus ended September at almost the same level as on August 30, gaining 2% over the quarter, a performance comparable to that of the Nasdaq and the Euro-Stoxxx50 (-1.1% this Monday and 2.5% since the end of June, the '5,000' are preserved).
Wall Street reopened without direction, with the 3 main indices down by a homogeneous -0.1%, with the S&P500 gaining +5.2% over the quarter and the Nasdaq at +2.2%.

In Europe, investors did not welcome the good German (+1.6%) and Italian (+1.2%) consumer price indices, nor did the bond markets, with a modest easing of -1.2 on German Bunds to 2.126% and -0.5Pt on our OATs to 2.9215% (i.e. 80Pts spread versus Germany), while Italian BTPs stagnated at 3.45%, despite very muted inflation in September.
In the US, T-Bonds are down +3pts at 3.783%, a decline that has worsened since 4pm.

Inflation figures for the eurozone as a whole are due on Tuesday, and are expected to be good.
Traders will also be paying close attention this week to the PMI and ISM activity indices, as well as to the US employment report for September.
The FOREX is in the doldrums, with parity frozen at 1.1160 on the E/$ and the $-Index clawing back 0.1% to 100.48, still in contact with its annual lows.
Tensions in the Middle East had little impact on oil prices, with Brent down 0.6% to $72.00 in London and WTI stable at $68.8 (supplies and refinery operations were disrupted by a violent storm on the East Coast (North Carolina).
In other stock news, Stellantis weighed heavily on the CAC40 with a -15% loss (annual low clearly breached): the group reduced its 2024 targets to take into account its decision to amplify its actions to correct performance problems in North America, as well as the deterioration in the dynamics of the global automotive sector.

Vivendi has entered into bilateral structured financing agreements enabling it to cover its potential bond debt repayment needs, should its demerger project be successfully completed.

Atos announces that its shareholders and financial creditors, meeting in classes of affected parties, have broadly supported the proposed accelerated safeguard plan, with all three classes voting in favor by the required majority.

TotalEnergies reports that it has commissioned Danish Fields and Cottonwood, two giant solar power plants with battery storage located in southeast Texas, new projects representing a combined capacity of 1.2 GW.

Oddo BHF reaffirms its 'outperform' rating on STMicroelectronics, with a price target reduced from €40 to €36, in the wake of lower 2024-26 EPS estimates of around 7% for the Franco-Italian semiconductor manufacturer.


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