CAC40: decline in the wake of luxury goods after Chinese disappointment

(CercleFinance.com) - The CAC40 slightly trimmed its losses from -1% to -0.
8% at 7.5105Pts, in the wake of the luxury goods sector (no 3rd 'support measure' package, but announcement of protectionist measures) and a sluggish end to the session on Wall Street on Monday, against the backdrop of a frank deterioration in the bond markets.

This deterioration continues today, with the US 10-year at 4.053% (+2.4pts), OATs tightening +1.3pts to 3.038% (compared with 3.017% for Spanish bonds) and Bunds +1pt to 2.259%.
Wall Street resisted with gains of +0.5% on the S&P500 and +0.9% on the Nasdaq (with Palo-Alto at +3.5%, Nvidia +2.5%).

Last weekend's 'Goldilocks' scenario (robust growth against a backdrop of falling inflation and interest rates) is losing its relevance: "Treasuries continued to tighten across the curve at the start of the week, with both 2-year and 10-year yields rising above 4% for the first time since August", points out Michael Brown at Pepperstone.

According to this strategist, the continued reassessment of monetary policy expectations in a less accommodative direction, following Friday's employment figures, was the main reason for the continued selling pressure on US bonds.

Crude oil, of course, continues to reflect a significant geopolitical risk premium due to tensions in the Middle East, with Brent above the $80/barrel mark for the first time since August", he also points out.
The passage of Hurricane 'Milton' over Florida, which will flood the US Gulf coast, will temporarily halt oil production.

In terms of statistics, operators were informed of France's trade balance this morning, before the US trade balance in the early afternoon.

In August 2024, France's trade balance deteriorated significantly according to CVS-CJO data from the French customs administration, with a deficit of 7.37 billion euros after 6.04 billion the previous month.
The Euro is treading water at around $1.0975, and the Dollar Index is down -0.15%: nothing very remarkable, despite the tense geopolitical context.

In other stock news, Vinci has announced the acquisition of RH Marine and Bakker Sliedrecht, two companies specializing in the maritime sector, enabling it to enrich its industrial services offering and strengthen its presence in the Netherlands.

Argan announces the sale of its data center in Wissous (Essonne) to Invesco Real Estate for a surface area of over 22,000 m2, for a price of 59 million euros excluding transfer duties, a transaction that completes its arbitration program for 2024.

As part of its joint takeover bid with Rubis for the Italian group Unieuro, Fnac Darty announces that it has lowered the minimum threshold requirement from 90% to 66.67% of the capital, reflecting their desire to successfully implement this takeover bid.

TotalEnergies announces that it has signed a renewable electricity sales contract (PPA) with Saint-Gobain, providing for the continuous supply of electricity to power the building materials group's industrial sites in France.

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