CAC40: back in the green thanks to Nasdaq and Tesla

(CercleFinance.com) - The Paris Bourse reversed course and returned to the green, boosted by a surge in US indices after Friday's sell-off.

The CAC40 gained 0.1% (to 7,275), while the Euro-Stoxx50 returned to equilibrium (to 4,792)... as did the Dow Jones (still in the red at 4:45pm).
US equities had been weighed down by strong intraday interest-rate tension on Friday (with the '10-yr' testing 4.51%), and after a lull on Friday evening, yields are back on the rise, with the '10-yr' up +2.4pts at 4.441%, and the '30-yr' up nearly 5pts at 4.6500%, its worst level since the end of last May.

Wall Street had reopened without a trend, but buyers are now showing a little more presence for this 1st session of the December trading term.
The S&P500 gained +0.4%, the Nasdaq rebounded +0.8% (wiping out a third of the ground lost on Friday)

The Nasdaq-100 benefited from Tesla's +6.5% surge (which will benefit from support for autonomous vehicles) and its (distant) rival, Lucid Group, soared +6.4%.

In Paris, the "technos" did not shine: the CAC was even penalized by the decline of ST-Micro (-2%).
Wednesday's publication of Nvidia's results (its capitalization represents 1.2 times France's GDP) will be the week's big event.
Analysts covering the stock are expecting a publication similar to its last announcements, i.e. better-than-expected accounts accompanied by an increase in targets, especially as the semiconductor designer is now starting to benefit from the recent launch of its new architecture, dubbed 'Blackwell'.

The week looks set to be a quiet one, with few major indicators on the agenda, the main event being Friday's publication of the European flash PMI indices.

"The themes that continue to preoccupy the markets are now well known: on the one hand, the effect of Trump's election, weak demand from China and disparate corporate comments on the third quarter", point out Edmond de Rothschild's teams.

On this last point, more than half the companies in the STOXX 600 published their results, and only a few sectors surprised positively on average', the private bank points out.

Barclays' strategists point out that European companies reported an average of 3% growth in third-quarter earnings per share (EPS), compared with 7% for their US counterparts.

The Trump trade - which carried Wall Street in the wake of the November 5 presidential election - nevertheless seems to have run out of steam over the past week.

Investors fear that the "pro-business" approach advocated by the real estate magnate will lead to a resurgence of inflation, which could cause the Fed to slow down its rate cuts.

On FOREX, a calm session with the Euro gaining 0.15% to $1.0565.
Gold rises back above $2,600, oil climbs +2.5% to $72.8 in London.

In the news for French companies, Orange announces that it is appealing the seizure, on October 7, of 312 million euros, ordered by the National Financial Prosecutor's Office (PNF) as part of a dispute over VAT rates applied to certain promotional offers between 2017 and 2019.

Vivendi reports that Canal+ is organizing a Capital Markets Day on Monday, during which its strategy and ambitions will be presented in the run-up to its admission to the London Stock Exchange, scheduled for December 16.

Finally, Française des Jeux (FDJ) reports that it has successfully placed its inaugural bond issue for 1.5 billion euros, in three tranches of 500 million each maturing in six, nine and 12 years, and with annual coupons of 3.000%, 3.375% and 3.625%.

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