CAC40: sinks to 7550, rates under heavy pressure by +10Pts

(CercleFinance.com) - The CAC40 begins the week and the new November trading term on a heavy note, down 1% to 7,536pts, in skeletal volumes, with 2.
5 billion euros traded in 8 hours.

Wall Street, which had reopened with declines in line with futures: -0.1% to -0.2% in early trading, is now in the red, with -0.5% for the Nasdaq, -0.7% for the S&P (which set its 23rd annual record on Friday) and -0.9% for the Dow Jones.


We don't have the impression that this will be the most exciting week ahead", warns Deutsche Bank, while acknowledging that "the results season is now in full swing" and that "the US elections look extremely tight".

The Conference Board's leading indicators on Monday showed a decline of -0.5%: the composite index calculated by the Conference Board had been expected to fall by just -0.3%.

The employers' organization points out that over the six-month period from March to September 2024, the index fell by 2.6%, a sharper decline than the 2.2% observed over the previous six-month period.

In addition to the weakness in new industrial orders, the Conference Board points to the continued inverted yield curve, the decline in building permits and consumer pessimism about future business conditions.

More significant figures are expected in the second half of the week, with preliminary PMI indices, and business climate indices in France and Germany.

The next few days should be dominated by corporate releases, such as those from SAP, L'Oréal, Deutsche Bank, Renault, Unilever and Sanofi in Europe, and AT&T, Boeing, Coca-Cola and Tesla in the USA.

Thursday's session will be particularly busy with quarterly news: it will be the busiest day of October.

The heaviness in equities can be explained by the continuing tension in rates, with new record yields since the end of July, notably US T-Bonds with +105Pts to 4.1760%, +9.2Pts on the '30 yr' to 4.4710%: we're heading for the worst closing level since July 26.

No better in Europe, with the yield on our OATs jumping +11.6pts to 3.013%, Bunds +9.2pts to 2.278%, Italian BTPs +14.3pts to 3.511%, Spanish 'Bonos' +11.7pts to 2.994%.

Despite this strong interest rate pressure, usually detrimental to precious metals, gold soared +1.5% to a new record high of $2.740, while the ounce of silver soared +10% in 48 hours to $34.3.

The dollar regained a few fractions (+0.3%) against the euro, to 1.08250.

In Paris stock news, Sanofi announced that it had entered into exclusive negotiations for the potential sale to CD&R of a controlling 50% stake in Opella, in which Bpifrance is to become a minority shareholder.

Forvia reports third-quarter 2024 sales of €6.36 billion, down 2.6% on a reported basis and 0.4% on an organic basis, outperforming global automotive production by 420 basis points.

The automotive supplier confirms its guidance for 2024 of sales of between 26.8 and 27.2 billion euros, an operating margin of between 5 and 5.3% of sales, and net cash flow greater than or equal to 550 million euros.

Eutelsat Group reports the successful launch and deployment of 20 satellites in low-Earth orbit, adding to the OneWeb satellite constellation. The satellites were launched aboard SpaceX's Falcon 9 rocket.

On the basis of its September 30 results and forecasts, real estate group Icade expects annual CFNC per share to be at the high end of its guidance range, between €2.75 and €2.90 for core activities and between €3.55 and €3.70 overall.

Private hospital group Ramsay Santé reports a net loss attributable to equity holders of the parent of 53.9 million euros for its 2023-24 financial year, due to lower operating income and higher cost of debt.

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