CAC40: awaiting US election results

(CercleFinance.com) - The CAC40 is up 0.
4% at 7440, for a week in which all eyes will be focused on a US presidential election with a particularly uncertain outcome.

'Neither candidate has announced any intention of reducing the federal budget deficit. In an economy already exceeding its potential, this could cause excess demand and pressure on prices", pointed out Oddo BHF last week.

"It is universally accepted that this risk would be greater if Donald Trump is elected and implements his program (raising tariffs, limiting migratory flows)", warned the research firm, however.

In another highlight of the week, the Bank of England and the Federal Reserve will announce their respective monetary policy decisions on Thursday, with a 25 basis point rate cut widely expected from the US central bank.

Weaker-than-expected job creation could prompt the Fed to follow up this cut," said Mahmoud Alkudsi, senior market analyst at ADSS, on Friday, following the poor employment report for October.

This news could overshadow the week's statistics, such as the PMI activity indices, or publications from companies such as Bouygues, Crédit Agricole and Veolia in Paris, or DHL, Ahold Delhaize and IAG elsewhere in Europe.

The HCOB PMI buyers' index for French manufacturing industry, produced by S&P Global, stood at 44.5 in October, relatively stable compared with September (44.6), but continuing to signal a sharp deterioration in the sector's economic situation.

Meanwhile, Schneider Electric's Board of Directors has appointed Olivier Blum as Chief Executive Officer, with immediate effect, after terminating Peter Herweck's appointment due to disagreements in the implementation of his roadmap.

Bureau Veritas has reached an agreement to acquire the Australian APP Group, a strategic transaction that will strengthen its presence in the Asia-Pacific region and extend its capabilities in infrastructure projects.

Engie announces that it has won a 100 MW installed capacity Battery Energy Storage System (BESS) project from electricity grid operator Elia, in the fourth auction of the Capacity Remuneration Mechanism (CRM) in Belgium.

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