CAC40: contraction widens at the end of the session

(CercleFinance.com) - The Paris stock market widened its losses in the final part of the session: at the final gong, the Paris index lost 2.
69% to 7,226 points, heavily penalized by the contraction in the luxury goods sector, with Kering down 5.8% and LVMH down 4.5%.

STMicro was the only one of the 40 CAC stocks to rise, with a gain of 1%.

Across the Atlantic, after five consecutive sessions of gains since Donald Trump's election, the New York Stock Exchange suffered its first hiccup on Tuesday amid fears that bond yields would rise with the return to power of the American businessman. The Dow Jones and Nasdaq lost 0.4% and the S&P500 0.2%.

It's hardly surprising that the Old Continent's indices are languishing: not only have they been battered lately by political uncertainty, but also by sluggish growth and disappointing corporate results.

In these conditions, investors should be keen to turn their attention to economic indicators over the coming weeks.

And it's not off to a good start, with inflation in the eurozone coming in at an annualized 2% in October, after +1.7% in September, which seems to make the likelihood of a 50-point drop in December more remote.

The possibility of the ECB stepping up the pace of rate cuts is no longer part of the central scenario, given the differences of opinion that currently seem to reign within the institution.

And on the growth front, in Germany, the ZEW index of investor sentiment is at half-mast, reflecting the impact of the political crisis caused by the break-up of the three-party coalition last week.

A small but not reassuring downer: the inflation rate in Germany - measured as the change in the consumer price index (CPI) compared with the same month a year earlier - has been confirmed by Destatis at 2% for October 2024, compared with 1.6% the previous month.

On the bond front, US 10-year T-Bonds are down +4.2pts at around 4.392%, while German Bunds of the same maturity are up +1.5pts at 2.35%, and our OATs are down +3.5pts at 3.1140%.

Note the continuing surge in the value of the dollar against the euro (-0.5%), which is flirting with $1.060/EUR.
The Dollar's strength causes the gold Ounce to fall back (-3%) to $2,600/Oz.

In French company news, Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), reports the successful launch of the Koreasat 6A telecommunications satellite aboard a SpaceX Falcon 9 rocket from Cape Canaveral Air Force Station, Florida.

Getlink announces that LeShuttle carried 147,919 passenger vehicles in October 2024, down 12% on the same month in 2023, which had nevertheless benefited from the impact of the Rugby World Cup.


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