CAC40: penalized by the fall of Thales and the banks

(CercleFinance.com) - The Paris Bourse is down 0.
6% this morning, around 7,170 points, penalized by Thales, which is down nearly 7% following the announcement of the opening of an investigation in the UK (see below) into alleged corruption.

The Paris index also had to contend with a sharp downturn in the banking sector, with Crédit Agricole, BNP Paribas and Société Générale each losing between 2.6% and 2.9%.

On the statistics front, after reporting a stagnation in overall activity in October, the HCOB composite flash PMI index for the eurozone fell to 48.1 in November, highlighting the sharpest contraction in overall activity since January.

In France, the HCOB composite PMI flash index for overall activity fell sharply in November, from 48.1 in October to 44.8 for the current month, indicating the sharpest deterioration in private sector business conditions since January.

These figures confirm the sluggishness of the Old Continent's economy, a factor behind the recent slide in European stock markets relative to Wall Street.

'Weak orders, political uncertainty, Donald Trump's tariff threats - there's nothing to suggest a rebound in industrial sentiment', predicts Bruno Cavalier, Oddo BHF's chief economist.

Hope lies in the fact that services are holding up better", continues the professional.

Due in particular to the sharp slowdown in Germany, these statistics could, however, raise hopes of more aggressive rate cuts by the ECB.

The day will also be marked by the afternoon publication of the US PMI, which should once again reveal a disparity between industry and services.

Also expected in the afternoon, the University of Michigan's Household Confidence Index - finalized before the November 5 presidential election - should show that consumer morale remains solid.


For its part, the euro continued to fall against the dollar, to around $1.0465, which led to a decline of around 0.5% against the greenback over the week as a whole.

On the energy markets, oil prices were little changed, still torn between geopolitical uncertainties and questions about global growth, with Brent crude oil trading at around $74.3 a barrel in London.

In French company news, the Serious Fraud Office (SFO), the UK's anti-fraud body, announced on Friday that it was launching an investigation into Thales, on suspicion of bribe payments.

Although the exact nature of the investigation is not known, Nick Ephgrave, Director of the SFO, refers to "serious allegations" of irregularities.

In addition, ahead of an investor day (CMD) devoted to Vinci Energies, Vinci says it expects annual sales growth for this division in the mid- to high-single digits on average between 2024 and 2030.

Finally, Worldline announces that it has placed a €500 million bond issue maturing in November 2029, with a coupon of 5.25%. Settlement and delivery are scheduled for November 27, and the bonds will be listed on the Luxembourg Stock Exchange.

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