CAC40: languishing at 7,380, W-Street timidly rising

(CercleFinance.com) - A soporific session on the Paris stock exchange, which has been trading within narrow limits for nearly 7 hours (between 0.
00% and +0.2%), in anecdotal volumes (950MnsE), as operators seem to be giving up on any initiative on a day marked by American politics (election day which looks extremely indecisive, to the extent that the Democratic majority believes that the final result may not be known for several days).

Wall Street had closed slightly lower on Monday, but with gaps that only reflected "adjustments" and not easing motivated by fears that the United States was facing a "zone of uncertainty".

On Tuesday, the US indices erased - on average - the previous day's losses, with +0.7% on the Nasdaq (18,300), +0.5% on the S&P500 (5,740) and +0.2% on the Dow Jones.

'Trump trades are a little less buoyant. Several polls seem to indicate that the electoral momentum is on the Democratic candidate's side", notes Christopher Dembik, at Pictet Asset Management.
And he adds: "Nevertheless, nothing is certain. We are not immune to a surprise on Wednesday morning".
"Many investors fear an abrupt market reaction - for example, if the gap between the two candidates is marginal, which could lead to numerous legal disputes and delay the announcement of the winner", he continues.
This explains why the VIX has risen sharply since last week and remains close to the 22E mark.

Wall Street welcomes the nearly +20% widening of the trade deficit to -$84.4 bn in September (compared with -$70.8 bn the previous month).
According to the Commerce Department, this spectacular deterioration is the result of both a 1.2% drop in US exports of goods and services, to $267.9 bn, and a 3% increase in imports, to $352.3 bn.
We are now awaiting the composite PMI indices in the UK and the US.

In Europe, operators took note on Tuesday of French industrial production: it fell over one month (-0.8% after +1.4% in August) in both manufacturing and industry as a whole (-0.9% after +1.1%), according to Insee's CVS-CJO data.

On the rates front, with 48 hours to go before the FED meeting, US T-Bonds are down +1Pt at 4.32% and +1.5Pt on the 2-year at 4.191%.

In Europe, Bunds are down +1.5Pt to 2.405%, while OATs are down just +0.6Pt to 3.143%.

In Paris, Bouygues has reported a nearly 6% increase in operating income from ordinary activities (ROCA) for the first nine months of 2024, an improvement largely driven by its Equans subsidiary.

Michelin today announced to the 1,254 employees at its Cholet and Vannes plants that it intends to cease production by early 2026 at the latest. These two plants have been facing major economic difficulties for several years.

Atos announces that it has signed a sale agreement with Alten for the sale of its Worldgrid business, which provides consulting and engineering services to energy and utility companies, for an enterprise value of 270 million euros.

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