CAC40: buyers prevail, despite rates and 'Milton

(CercleFinance.com) - The Paris Bourse is back on track, with buyers waking up to the fact that the CAC40 is up 0.
5% at 7,560, compared with a 0.7% decline the previous day, against a generally worrying backdrop.

US indices or reopened directionless, with the S&P500 down just 0.1% and the Nasdaq down -0.2%: the 3 indices are now gaining between +0.4% and +0.5%.
The Euro-Stoxx50 lines up with a gain of 0.5% to 4,3975, while the DAX40 stands out with +0.8%.

Despite the day's upturn, the CAC "remains under pressure from three factors", noted Alexandre Baradez, head of market analysis at IG France.

He pointed to geopolitical stress with escalating tensions in the Middle East, the evolving political situation and budgetary issues in France, and finally the postponed expectations of rate cuts in the United States.

Whether in the United States or Europe, there's probably also a bit of hedging going on ahead of the corporate earnings season, which kicks off in a few days' time. But also a bit of hedging ahead of the US election in a month's time", he added.

While waiting for the real kick-off to the earnings season, which will be given on Friday by JP Morgan Chase, traders should pay close attention this evening to the minutes of last month's Fed monetary policy meeting (FOMC).

There is no debate on the direction of policy (easing), but on the speed of adjustment", said Oddo BHF at the start of the week, estimating that the minutes of the last FOMC "will perhaps shed some light on this point".
Bond markets are taking a breather from the lack of statistical news, and the highlight of the day will be the publication of the minutes of the September FOMC meeting at 8pm.
The only "number" will be the weekly change in US oil inventories (at 4:30pm).

A wait-and-see attitude has prevailed overall since Tuesday evening, ahead of Thursday's US inflation figures.
T-Bonds are back up by a symbolic +1.2Pt to 4.04650%, the '2-yr' has the same spread at 3.992%, and the '30-yr' is stabilizing at 4.3200%, its worst score since July 31.
The picture is no rosier in Europe, with Bunds at 2.2540% (+0.8Pt only), but our OATs adding +1.3Pt to 3.0300%, and Spanish 'Bonos' gaining +1.4Pt to 3.01%.
The Euro loses 0.25% against the Dollar to 1.0950, and gold continues to consolidate at 2.615/2.620.
Oil loses -1.8% to $76 despite the arrival of Hurricane Milton, as weekly oil inventories rise, ahead of the closure of several facilities due to impending bad weather.
Economic activity in the Southern US could remain disrupted for several days, affecting the whole of the US.

In Paris, Kering announces the appointment of Stefano Cantino as CEO of Gucci, reporting to Francesca Bellettini, the group's deputy CEO in charge of corporate development.

Sanofi reports that new data on its Beyfortus, confirming its real-life efficacy against RSV infections in infants, will be presented at IDWeek 2024, to be held in Los Angeles from October 16 to 19.

Thales announces that its Board of Directors has decided to pay an interim dividend of 0.85 euro per share at the beginning of December, and to cancel 4,268,227 of its own registered shares, representing 2.03% of its share capital.

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