CAC40: climbs +1.1% as rates soar 10pts

(CercleFinance.com) - The week started badly (-2%), but ended on a brighter note, with the Paris Bourse (+1.
1% to 7,560) reducing its weekly loss to less than 3%.
The CAC40 also benefited from gains by Accor (+4%), Société Générale (+3.2%), Renault (+3.2%), Vinci and Téléperformance (+3%).
The E-Stoxx50 regained +0.9% and its weekly consolidation stood at -2.2% after +4% the previous week.

The publication of monthly employment figures in the United States also gave a boost to US indices, with the S&P500 up 0.5% and the Nasdaq up 0.8% (losing just under 0.5% over the week), despite the sharp deterioration in bond markets.
The T-Bond 2034 rallied +11pts to 3.97% (i.e. +22pts hebdo, the worst score since August 9), the '2-year' +16pts to 3.895%, the '30-year' +7pts to 4.2500%.

The assumption of a -50pt cut by the FED in early November falls to 20%, so it will almost certainly be -25pts in 4 weeks' time.

The US economy thus generated 254.000 new non-farm jobs in September, according to the Labor Department, a number more than 110,000 higher than market expectations, which were generally only around 140,000 (identical to Wednesday's ADP report).
The unemployment rate also eased by 0.1 points to 4.1%, where economists were expecting it to remain stable at 4.2%, while the labor force participation rate held steady at 62.7%, and average hourly earnings rose by 4% year-on-year.

Non-farm payrolls for the previous two months were also revised, from 89,000 to 144,000 for July and from 142,000 to 159,000 for August, giving a total revision balance of +72,000 for these two months.

There were also quite a few figures on the menu in Europe this morning, notably in France with a clear rise in production in the manufacturing industry (+1.6% after -0.2% in July), as in industry as a whole (+1.4% after +0.2%) in France, between July and August, according to Insee's CVS-CJO data.

The trend is negative on the European bond market, where the ten-year German Bund yield is up +7.5pts to 2.212%, while our OATs are up +6.4pts to 3.000% (+8pts hebdo) and Spanish bonds 'only' +4.7pts to 2.972% (the gap with our OATs is still widening).
Things are still going badly in the UK, with Gilts +14pts to 4.1580, i.e. +18pts over the week (with levels comparable to 07/25).

The euro resumes its slide against the greenback: it loses -0.6% to 1.0965, i.e. almost -2% weekly (the $-Index gains +2.1% weekly to 102.55).

The oil market returns to more than one-month highs, with Brent crude at $78.3 a barrel (+0.5%) and WTI (+0.7%) at $74.5 on the NYMEX.

In the news for French companies, agrifood group LDC reported sales of 2.98 billion euros for the first half of 2024-25, down 1.2% on a reported basis (-3.9% organic), despite volume growth of 4.9% (+3.6% organic).

emeis reports net income (Group share) of -257 million euros for the first six months of 2024, compared with -371 million a year earlier, and stable EBITDAR (+0.8%) at 339 million, down one point to 12.2%.

Thales announces its participation in the creation by Banque Postale, in collaboration with CB and fintech HandSome, of a bank card for the visually impaired, to be tested for six months from the end of October.

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