CAC40: cuts gains by 2/3 despite an upturn in interest rates

(CercleFinance.com) - The Paris Bourse cut its lead from +0.
7% (to 7,550 at 4pm) to just +0.2%, to 7,510 (the CAC40 is currently posting a 0.00% year-to-date performance), while Wall Street reduced its lead with a +0.2% rise in the S&P500 and +0.6% in the Nasdaq, which in reality owes almost everything to Tesla's +17%, with the Dow Jones down by more than 0.3%... in other words, it was a trendless day, after a sharp decline the previous day.
Eurozone indices reached their best level of the day after the publication of preliminary PMI activity indices in Europe... then eased back a little, recovering just after the US markets reopened.

'In Europe as in the US, PMI surveys show a divide between industry and services. Industrial weakness is more marked in Europe, but in services too, Europe is lagging behind', pointed out Oddo BHF at the start of the week.

Down to 47.3 this month after 48.6 in September, the HCOB composite flash PMI index of overall activity in France settled below the 50 mark unchanged for a second consecutive month in October.

The HCOB composite PMI flash index for overall activity in the eurozone stood at 49.7 in October, very close to the level recorded in September (49.6), suggesting a very slight decline in overall activity in the region for a second consecutive month.

Business sentiment in France also fell in October, according to the synthetic indicator calculated by Insee, which dropped one point to 97. This is the result of a significant drop in sentiment in industry, not quite offset by an improvement in services.

In the USA, it's also "PMI day": growth in the US private sector accelerated slightly this month, according to S&P Global's composite PMI, which came in at 54.3 in flash estimate for October, after 54 for the previous month.
The October PMI level reflects robust expansion in private-sector activity, driven solely by services, while manufacturing output contracted for a 3rd consecutive month.
Real estate figures remain mixed: resales of older homes fell by -1% in September, but new home sales recovered by +4.1% ( 738,000 annualized) after falling by 2.3% in August.
The Commerce Department reports that the median price of new homes sold was $426,300, and their average price was $501,000 (an all-time record). The inventory of new homes ready for sale stands at 470,000, representing a 7.6-month supply at the current rate.

The Labor Department reports that new jobless claims in the US fell by 15,000 to 227,000 in the week to October 14.

The four-week moving average - more representative of the underlying trend - stood at 238,500, up 2,000 week-on-week.
There was a slight improvement in bond yields, with the Bunds down 7.5pts to 2.245% and our OATs to 2.977%, while the T-Bonds were more modest, with the 30-year down 4pts to 4.475% and the 2034 down 4.8pts to 4.187%.
The Euro rebounded against the Dollar: +0.1% to 1.0800, Gold eased to $2,733, Silver stalled at $34/Oz.
Finally, oil consolidated -1% to $74.4 in London.

Oddo BHF noted: "Jobless claims had risen recently due to the hurricanes ('Milton') and the strike at Boeing, which is disrupting its suppliers and subcontractors.

In addition to the various macroeconomic indicators, the stock market news is also marked by numerous quarterly publications, such as those of Kering (heavy downturn in Gucci sales, but the share rebounds by +2.5%), Carrefour and Michelin (poorly received with -7.5%) or Renault, Dassault Systèmes, Orange, Danone and Sodexo on Thursday.

Outside the CAC40, corporate publications were also plentiful, with Bic (+11%) and Bureau Veritas, for example, raising their full-year margin and growth targets respectively.


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