CAC40: closes in the green, with luxury stocks in support

(CercleFinance.com) - The CAC40 ended the session with a gain of 0.
46%, at 7,576 points, helped by a rebound in luxury goods, with +4.6% for Kering, +2.7% for LVMH and +1.1% for Hermès, as a new part of the Chinese stimulus package - a key market for the luxury sector - is due to be unveiled tomorrow.

Paris had begun the session slightly down by 0.40% at 7,510pts (in the wake of US futures), but the momentum was reversed with the Chinese announcement. It didn't matter that oil was back above $80 (+2.7% at $80.3), and it didn't matter that US indices were down: the S&P500, Dow Jones and Nasdaq dropped between 0.2% and 0.4%.

US equities are suffering from the pressure on yields: the '10 yr' is up +4pts to 4.0220, and the '2 yr' has even jumped +9.5pts during the session, to 4.025% (now 3.99%), returning to parity with the '10 yr'.

After disappointing publications in previous months, the situation on the US labor market improved markedly in September", recalls 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 well be focused on eurozone data, with a view to next week's ECB meeting.

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

In addition, following a 3.9% increase in July (revised from an initial estimate of 2.9%), volume orders in the German manufacturing industry fell by 5.8% in August compared with the previous month, according to Destatis CVS-CJO data.

Traders will be keeping a close eye on US inflation (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, and is content to claw back 0.1% towards $1.0975/E.

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.

Giving an update 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 announced that it had 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.

Copyright (c) 2024 CercleFinance.com. All rights reserved.