CAC40: clings to 7,530 despite W-Street and interest-rate heaviness

(CercleFinance.com) - After closing virtually at equilibrium on Tuesday, the CAC40 seems to be repeating the previous day's scenario, with an initial pullback followed by a return to equilibrium, despite persistent rate tension (OAT at 3.
055% and Bund at 2.323%) and the heaviness of US indices.

Wall Street reopened in retreat, then rapidly amplified its losses: the Dow Jones and S&P500 dropped -0.5%, the Nasdaq -0.8% as the quarterly publication season intensified.
But above all, the yield on T-Bonds tightened to 4.252% on the '10-year' (+3Pts) and towards 4.535% on the '30-year' (+2Pts).

Some experts believe that a return to power by Trump would be inflationary: "The stock market is starting to take its cue from the US and is betting that Trump has a strong chance of winning the November 5 election", says Christopher Dembik, of Pictet Asset Management.
He points out that "the negative correlation between the bond market and equities is not systematic".

"The US market is also more resilient than the European market, due to generally positive results. In Europe, we have had confirmation that economic momentum is slowing down, which is weighing on results", he continues.

As for the figures, resales of existing homes in the US are slowing down (-1% over 1 month, the worst score since the end of 2010), reflecting the rise in interest rates at the end of September: cash purchases account for 38% of transactions, while first-time buyers account for only 26%. The average time on the market has risen to 28 weeks, compared with 21 a year ago, and the average property price is $404,500 (+3% annualized).

Corporate news continues to set the pace in Paris this week, with a number of publications this morning, including those of Air Liquide, which has just announced quarterly sales up 3.3% on a like-for-like basis (down 0.7% on a reported basis). The Group posted sales of 6.76 billion euros for the third quarter of 2024.
On Wednesday, the ounce of gold set a new all-time record at 2,755 and the ounce of silver attempted to break the $35 barrier set in October 2012.

The morning also saw sales figures from pharmaceutical company Ipsen, which raised its annual targets, and from Thales, which reported a sharp increase in orders.

Thales reported sales of €14.07 billion for the first nine months of 2024, up 9.4% overall and 6.2% on a like-for-like basis, with organic growth driven in particular by the defense and security sector (+8.5%).

Among the other heavyweights on the Paris stock exchange, operators will also be able to react to the end-of-September business reports of cosmetics giant L'Oréal and communications group Vivendi, unveiled on Tuesday evening.

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