CAC40: Caution prevails, gold at record high

(CercleFinance.com) - The Paris Bourse ended the session down 1.
1% at 7,428 points, penalized by the contractions of Capgemini (-6.4%), Pernod Ricard (-4.3%) and Vivendi (-3.8%).

Across the Atlantic, however, the trend was upward, with the S&P500 and Nasdaq gaining between 0.1% and 0.2%, and the Dow Jones up 0.4%.

Against a backdrop of political uncertainty in the run-up to the US election and geopolitical tensions in the Middle East, Ukraine and the Taiwan Strait, gold reached a new high of $2,785 an ounce (+1.6%).

The session was marked by the release of numerous statistics.
GDP (gross domestic product) in the United States rose at an annualized rate of 2.8% in the third quarter of 2024, according to the Commerce Department's first estimate, a slight slowdown on the 3% figure for the second quarter.

This was also the eighth quarter out of the last nine in which growth exceeded 2%.

In addition, the PCE price inflation index was estimated at +1.5% unadjusted and +2.2% excluding food and energy, significantly down on the previous quarter's figures of +2.5% and +2.8% respectively.

Another eagerly-awaited figure: the US private sector created 233,000 jobs in October (after 159,000 in September), its highest level since July 2023 and more than twice as many as expected (115,000), according to the monthly survey by business services firm ADP.
This is the strongest month-on-month acceleration since July 2023.

'Even taking into account the post-hurricane recovery context, job growth was strong in October. As the year draws to a close, hiring in the US is proving robust and resilient overall', reacts Nela Richardson, Chief Economist at ADP.

Also eagerly awaited, Germany's inflation rate (or CPI) rose by +2% on October 2023, compared with 1.6% the previous month, according to Destatis' preliminary estimate.

Consumer prices are said to have risen by 0.4% sequentially over the month to September 2024. The 'core' inflation rate excluding food and energy, often referred to as underlying inflation, would have stood at 2.9% annualized in October, after 2.7% in September.

Announced this morning, French GDP growth in volume terms accelerated moderately in the third quarter of 2024, according to Insee: it thus advanced by 0.4%, after +0.2% in the second quarter, boosted by the Paris Olympic and Paralympic Games.

Finally, in the third quarter of 2024, GDP rose by 0.4% in the eurozone and by 0.3% in the EU (thanks to France and Italy), compared with the previous quarter, according to Eurostat's preliminary flash estimate, following increases of 0.2% and 0.3% respectively in the second quarter.

On the bond front, T-Bonds nevertheless eased by -1.5Pt to 4.26%. Conversely, Bunds of the same maturity are up +3.7pts to 2.37%.

The euro is benefiting from the yield differential in its favor, gaining +0.4% against the dollar to $1.086/E.
Brent crude oil is up +1.8% in London to $72.6 a barrel.

In the news for French companies, Schneider Electric reported a 5.9% increase in sales to 9.31 billion euros for the third quarter of 2024, driven by organic growth of 8%, a record for this period of the year.

Legrand has taken note of the enforceable decision of the French Competition Authority ordering Legrand to pay a fine of 43 million euros for the application of derogated prices on the French market between 2012 and 2015. Legrand categorically refutes this decision and reserves the right to appeal.

Airbus announces that Riyadh Air, the new international airline based in Saudi Arabia, has placed a firm order for 60 A321neo family aircraft.

Finally, TotalEnergies announces the start of production from the third development phase of the Mero field, located on the Libra block, 180 kilometers offshore Rio de Janeiro, Brazil, in the pre-salt Santos basin.

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