CAC40: closes in red, contraction in luxury goods

(CercleFinance.com) - The Paris Bourse ended the session down 0.
72%, at 7521 points, heavily penalized by the decline in the luxury goods sector, with Kering down 4.4% and LVMH down 3.6%, as Beijing finally announced no 3rd "support measure" package, but rather protectionist measures.

On the bond front, the deterioration continued, with US 10-years at 4.043% (+1.4Pt), OATs tightening by +1Pt to 3.031% (compared with 3.008% for Spanish bonds) and Bunds +0.5Pt to 2.255%.

Wall Street resisted with gains of +0.7% on the S&P500 and +1.2% on the Nasdaq (with Palo-Alto at +3.5%, Nvidia +2.5%), while the Dow Jones was content with +0.1%.

The 'Goldilocks' of last weekend are losing their relevance (robust growth against a backdrop of falling inflation and interest rates): '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.

Hurricane Milton's passage over Florida and along the US Gulf coast is proving less catastrophic than expected: the shutdown of oil production will be less long-lasting than feared, and the barrel is regaining all its gains since Friday, dropping -5.2% to $76.9 in London.

In terms of statistics, traders took note of the French trade balance this morning, before the US trade balance in the early afternoon.

In August 2024, France's trade balance worsened 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.
On the Forex market, the euro is trading "on the spot" against the greenback, at $1.097/E.

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 offer in services to industry and strengthen its presence in the Netherlands.

Argan has announced the sale of its Wissous (Essonne) data center 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 which 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 condition 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, which provides for the continuous supply of electricity to power the building materials group's industrial sites in France.

Finally, Sébastien Lecornu, Minister of the Armed Forces and Veterans Affairs, announced the launch by Dassault Aviation of the development of the combat drone that will complement the Rafale's future F5 standard (post-2030).

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