CAC40: cool-headed after Iran strikes, ADP disappoints WStreet

(CercleFinance.com) - After losing 0.
8% yesterday, the Paris stock market remains hesitant, with green dominating for a long time, and red winning by a narrow margin (-0.2%) with 90 minutes to go.
European markets remained generally directionless, while Wall Street reopened slightly lower, with scores ranging between -0.1% (Dow Jones), -0.2% (S&P500) and -0.3% (Nasdaq).

The news continues to be marked by persistent geopolitical tensions in the Middle East, with Teheran firing nearly 200 missiles at Israel last night, including hypersonic ballistic missiles.
Today, Israel continued its massive bombardment of southern Lebanon.... but has not retaliated against the Iranian strikes, which have been 'calibrated' to cause no civilian casualties (zero Israeli deaths)... and demonstrate the impossibility of containing a massive attack with the anti-aircraft means at Tel Aviv's disposal.

'A major escalation on Iran's part would risk dragging the United States into war, something Teheran would prefer to avoid', reminds James Reilly.
And an attack by Iran would not leave Moscow or Beijing without a reaction: Xi-Jinping's entourage keeps warning that 'international law and the territorial integrity of all countries must be respected'.

In Asia, the Nikkei index on the Tokyo Stock Exchange fell by 2.5% at the end of the session in the face of the increasingly real risk of a conflagration in the Middle East.

The stock markets are also awaiting the employment figures due on Friday, which will once again be closely watched.... and the ADP survey comes as a small surprise, unsettling US bond markets somewhat.
The US private sector created 143,000 jobs in September, beating expectations as economists were expecting an average of 125,000 private-sector jobs to be created last month in the USA.
The number of jobs created in August was revised slightly upwards to 103,000, instead of the 99,000 initially announced.
The official job creation figures for September, to be published on Friday by the Labor Department, will cover both the private sector and public administration.

US T-Bonds, which had benefited from a wave of risk-off buying, rallied by +6pts to 3.803%, with the 2-year only up +1.8pts to 3.6400%.

The latest statements from Fed Chairman Jerome Powell suggested that the Fed was in no hurry to cut rates quickly, and that its decisions would be based on economic data.

On the oil front, Brent crude climbed 1.5% to $75.8 in response to renewed tensions in the Middle East.

On the European bond market, in the absence of stats, T-Bonds are leading the way, with Bunds up 7 points to 2.113%, OATs up 6 points to 2.889%, and Spanish bonds up 7 points to 2.905%.

Michel Barnier has announced a E60bn plan to restore our finances, including E40bn in savings and E20bn in increased tax revenues.
The revaluation of pensions could be postponed by 6 months, which would save around 5 billion euros.
On the foreign exchange market, the euro fell by a further -0.3% against the greenback, to $1.104.

In French company news, EssilorLuxottica announced that it had finalized its previously announced acquisitions of the Supreme brand and an 80% stake in Heidelberg Engineering, both transactions having received the green light from the relevant competition authorities.

Thales announced on Wednesday that it had presented its latest innovations in the autonomization of drones in support of naval operations at a military exercise in Portugal.

Lagardère News announced the launch of two new editions of ELLE, in Uzbekistan and Malaysia, bringing the number of editions worldwide to 50, all represented by its exclusive international agency Lagardere Global Advertising.


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