CAC40: buoyant thanks to a deluge of Wall Street records

(CercleFinance.com) - The Paris Bourse spent a long time looking for a trend (until around 3:30 p.
m.), and it was Wall Street that provided the positive impetus investors were hoping for.
The CAC40 gained +0.5 to +0.6% (around 7,585)... and this gain will in fact correspond to the weekly gain (the CAC40 was at equilibrium the previous day).
Because Wall Street ended the week with a new string of absolute records, with the S&P500 (+0.4%) at 5,815Pts and the Dow Jones soaring +0.8% to 42.800Pts, while the Nasdaq clawed back just 0.3%, strongly slowed by Tesla's -8% (below $220), the day after the presentation of 'Robotaxi' and its android 'Optimus' (and humorists will add 'Prime'... but that doesn't make shareholders laugh).

JPMorgan Chase's results were also very well received, up +3.5%, while Wells Fargo's soared +6%. Blackrock's quarterly results were also well received, up +3.5%, with assets under management reaching a record $11,500 billion.

Michael Brown, senior research strategist at Pepperstone, remains cautious: "the start of the third-quarter results season this Friday presents a risk".

With consensus EPS figures lowered by around 4% in the last quarter, companies have room to surprise positively", points out the strategist, who therefore expects a fifth consecutive quarter of overall profit growth.

On the macroeconomic front, U.S. consumer confidence worsened slightly, according to the index calculated by the University of Michigan (UMich), which stands at a preliminary estimate of 68.9 for the current month, compared with 70.1 for September.

This drop - where economists were expecting a slight rise instead - reflects declines in both the current assessment component (-0.6 points to 62.7) and the expectations component (-1.5 points to 72.9).l
The Labor Department reports that US producer prices stagnated in September compared with the previous month, and rose by 0.1% on a core basis (excluding food, energy and commercial services).

But expressed as an annual variation, while the rise in 'gross' US producer prices remained stable as forecast at 1.8% in August, it accelerated from +2.8% to 3.2% excluding food, energy and commercial services, propelling US yields to new highs since the end of July, with the '10-yr' reaching 4.11% in the session before easing to 4.0850 (-1Pt), the '30-yr' peaking at 4.40% (4.3900% this evening).... and the '2-year' improved to 3.9510% from 4.000% on Thursday.
In Europe, the Bund rose by +2.5Pts to 2.2800%, our OATs by +2.5Pts to 3.0500%, Italian BTPs by +3Pts to 3.568%.
Germany's inflation rate, measured by the annual change in the consumer price index (CPI), stood at +1.6% in September 2024, according to Destatis, which thus confirms its preliminary estimate.

Down 0.3 points on its August level, the annual inflation rate thus confirms that it is back below the 2% mark, reaching its lowest level since February 2021, when it stood at 1.5%.

The status quo is complete on the currency front, with the euro gaining +0.1% against the dollar at 1.0950 and gold recovering sharply towards $2,652, as the outlook for inflation in the USA remains worrying.

'In particular, further falls in energy prices have slowed inflation more significantly than in previous months', points out Destatis, which nevertheless notes above-average price rises in services. the UMich consumer confidence index in the USA.

In Paris stock news, Sanofi announces that it has entered into negotiations with CD&R for the potential sale of a controlling 50% stake in Opella, its consumer healthcare business, which employs over 11,000 people and operates in 100 countries.

Stellantis reports targeted organizational changes effective immediately within its management team, led by Carlos Tavares, who will retire at the end of his CEO mandate in early 2026.

Euroapi reports that it has finalized and secured financing for its FOCUS-27 strategic plan, and signed a new amendment with Sanofi to the global manufacturing and supply contract signed in 2021.

Edenred announces that its greenhouse gas (GHG) emissions reduction targets have been approved by the Science Based Targets (SBTi) initiative.

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