CAC40: erases morning gains and ends in the red

(CercleFinance.com) - After starting the session in the green, with a gain of close to 0.
7%, the CAC40 completely reversed course in the late morning, beginning a slow but steady fall which continued right up to the final gong.

At the close, the Paris index was down 0.66% at 7507 points, penalized in particular by Stellantis (-2.4%), Schneider Electric (-1.7%) and Legrand (-1.6%).

Chistopher Dembik, Investment Strategy Advisor at Pictet AM, noted this morning: "For the time being, the focus is on US technology stocks, which are due to publish their quarterly results this week.

'It is likely that this will simply lead to greater market concentration and push European investors to place their capital on the other side of the Atlantic, where stock market yields are much higher,' he added.

On Wall Street, the Nasdaq gained nearly 0.5%, ahead of the S&P500 (+0.2%).

On the statistics front, the Conference Board's US consumer confidence index rebounded strongly in October, according to the monthly survey by the Conference Board employers' organization, which came in at 108.7 versus 99.2 the previous month (revised from 98.7 on first reading).

In detail, the sub-index of Americans' assessment of their current situation rose by 14.2 points to 138, while that measuring their expectations rose by 6.3 points to 89.1, moving away from the 80 threshold which usually prefigures a recession.

But investors' attention is focused on a new surge in bond yields in the US, with the '10-yr' rising +5pts to 4.33% (4.345% at the day's high) and the '30-yr' peaking at 4.58% (4.566% at present, i.e. +3.6pts), its worst mark since July 3, 2023.

Things are no better in Europe, where the Bund is up +5pts to 2.335%, our OATs +6.5pts to 3.072%, and Italian BTPs +6pts to 3.555%.

On the FOREX, the dollar resumed its ascent, gaining +0.15% to $1.0789/E.

The combined rise in interest rates and the dollar still hasn't stopped the surge in gold prices, which set a new record at $2,770/Oz, the first time this has happened in over 50 years!

In other French company news, Alstom has signed a contract with Metro Ligero Oeste (MLO), Madrid's transport operator. The contract covers the complete overhaul of the Citadis streetcar fleet, in service in Madrid since 2007.

Moroccan company Panafsat and Thales Alenia Space, a joint venture between the Thales (67%) and Leonardo (33%) groups, announce the signature of a memorandum of understanding to build a Moroccan satellite communications system.

Safran Aircraft Engines launches an investment plan worth more than one billion euros to expand its global maintenance and repair (MRO) network to support growth in services dedicated to LEAP engines, which today power some 4,000 modern single-aisle aircraft.

The OCP Group and Engie have signed a strategic partnership aimed at accelerating the OCP Group's energy transition and actively contributing to that of the Kingdom of Morocco.

Finally, TotalEnergies announces that TE H2, CIP and A.P. Møller Capital have signed an agreement for a large-scale project in the Kingdom of Morocco. Located near the Atlantic coast in the Guelmim-Oued Noun region, the 'Chbika' project aims to build 1 GW of onshore solar and wind power capacity.


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