CAC40: Slightly up, lifts its head at the end of the session

(CercleFinance.com) - After dropping as much as 0.
5% in the early afternoon, the Paris Bourse managed to regain some altitude in the late afternoon, ending the session with a modest gain of 0.12% to 7,278 points, led by Société Générale and Renault (+1.6%).

US equities had been weighed down by strong intraday interest-rate pressure on Friday (with the '10 yr' testing 4.51%), and after a lull on Friday evening, yields started to rise again, with the '10 yr' pulling back +2.4Pts to 4.441%, and the '30 yr' gaining almost 5Pts to 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 +0.5% and the Nasdaq rebounded +0.9% (wiping out a third of the ground lost on Friday), driven by Tesla (+7%), which is set to benefit from support for its autonomous vehicles.

Nvidia's earnings release on Wednesday is the week's big event (its capitalization represents 1.2 times France's GDP).

Analysts covering the stock are expecting a publication similar to its latest announcements, i.e. better-than-expected accounts accompanied by an increase in targets, especially as the semiconductor designer is now starting to capitalize on 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 have 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 earnings per share (EPS) in the third quarter, 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 last week.

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

On the FOREX, a calm session with the Euro clawing back 0.2% to $1.057.
Gold breaks through the $2,600 mark (+1.9%).600 (+1.9%), oil climbs +3% to $73.1 in London.

In French company news, 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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