CAC40: supported by luxury goods, unaffected by rising interest rates

(CercleFinance.com) - The CAC40 is back in the green - above 7,575 - in the wake of 'luxury' stocks (Kering +3.
8%, LVMH +2.2%) as a new part of the Chinese stimulus package is due to be unveiled tomorrow.

Paris began the session slightly down by 0.40% at 7510pts (in the wake of US futures), which seemed quite logical given the deterioration in the interest-rate markets, with the OAT at 3.02% (compared with 2.99% on Friday and 2.82% on Tuesday) and Bunds at 2.245%.
With China's announcement, the tide has turned, and it doesn't matter that oil is back above $79 (+1.5% to $79.3), or that Chinese indices have reopened down -0.3% on average (the Nasdaq is down -0.4%).
US equities are suffering from the pressure on rates: the '10-yr' is up +4.5pts to 4.0250, and the '2-yr' has even jumped +7.5pts to 4.02% (now 3.99%).

After disappointing releases in previous months, the situation on the US labor market improved markedly in September", reminds Commerzbank, pointing out that 254,000 new jobs were created, much more than expected.

"Of course, individual monthly figures should not be overestimated, but this report should allay fears that the US economy is on the brink of recession", continues the German bank.

While these figures could prompt the Fed to cut rates by just 25 basis points in November, traders' attention this week may be focused on Eurozone data, with a view to next week's ECB meeting.

We expect the latest eurozone retail sales figures to remain lacklustre, while German industrial production probably fell a little further in August", says Capital Economics.

Between July and August 2024, the volume of seasonally-adjusted retail sales rose by 0.2% in the eurozone and by 0.3% in the EU, according to initial estimates from Eurostat, the European Union's statistical office.

In addition to these two figures, traders will be keeping an eye on inflation in the USA (Thursday), as well as the start of the US earnings season, with those of banks such as JPMorgan Chase (Friday).

Meanwhile, the Euro is stabilizing against the Dollar, content to claw back 0.1% towards 1.0970.

In Paris stock news, Unibail-Rodamco-Westfield announced the resignation of Xavier Niel from its supervisory board, and the co-option of Michael Boukobza to replace him for the remainder of his term.

Reporting on the malfunction of the electrical interconnector between France and Great Britain, which led to the suspension of activity at its subsidiary ElecLink, Getlink estimated that repair work would take six weeks to complete.

Bureau Veritas announced an agreement to sell its food analysis business to Mérieux NutriSciences, and announced the acquisition of IDP Group, an independent provider of BIM (Building Information Modeling) services.

TotalEnergies announces that it has signed an agreement with RWE to acquire a 50% stake in two offshore wind projects, N-9.1 (2 GW) and N-9.2 (2 GW), located 110 km off the German North Sea coast.


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