CAC40: W-Street once again underperforms by nearly 1%.

(CercleFinance.com) - The Paris Bourse is weighed down with 1/2 an hour to go, and its decline has widened to -0.
8%, with the CAC40 retreating to or below the 7,200 mark (compared with -1% this morning and a low of 7,185).

The Euro-Stoxxx50 lost 0.7%, Frankfurt 0.5%, while Wall Street held firm after yesterday's quadruple record: no trend between the Dow Jones, down -0.5%, the S&P, up 0.2%, and the Nasdaq, up +0.4 to +0.5%.
Wall Street got the week off to a very good start yesterday, with bond yields easing sharply: the Dow Jones, S&P 500, Russell-2000 and Dow Transport all hit new all-time highs.
Investors welcomed the appointment of Scott Bessent, an expert in financial markets, as US Treasury Secretary.

The first 'US figure of the day' was rather reassuring: US consumer confidence improved by +2pts in November.
The Conference Board employers' organization published an index of 111.7, compared with 109.6 the previous month (revised from 108.7 on first reading).

In detail, the sub-index of Americans' assessment of their current situation rose by 4.8 points to 140.9, while that measuring their expectations rose by 0.4 points to 92.3, moving away from the 80 threshold which usually prefigures a recession.

The second figure is less 'smiling': new home sales fell sharply in the USA in October, against a backdrop of high property prices and borrowing rates which are still weighing on demand.

Expressed as a seasonally-adjusted annual rate, sales fell by 17.3% last month to 610,000 units, according to figures released by the Commerce Department.

The median house price continued to rise (+2.7%), reaching $437,300 last month, compared with $426,000 in September and $417,500 in October last year.

In his most recent speeches, Jerome Powell noted that the US economy remained solid and that there was no need for urgent action, while keeping open the option of a rate cut in December.

According to the CME Group's FedWatch barometer, investors assess the probability of a 25 basis point rate cut by the central bank in December at 56.2%, compared with 74.6% a month ago.

Bond markets are digesting their spectacular rebound of the previous day, with T-Bonds erasing -14pts on Monday: the '10-yr' is back up +7pts to 4.325% and the '30-yr' +4.5pts to 4.497%.

Our Italian OATs and BTPs are completely stagnant, as are Bunds at around 2.2060%.

On the earnings front, U.S. retailers Abercrombie & Fitch and Best Buy will unveil their accounts before the Wall Street opening, ahead of Dell and HP publications scheduled for the evening.

On the currency markets, the dollar rallied strongly against the euro following Donald Trump's remarks, taking the single currency to new two-year lows of around 1.0475.

Crude oil prices were little changed on hopes of a possible ceasefire between Israel and Lebanon. Brent crude advanced 0.1% to $73.1 a barrel, while US light crude held steady below $69.



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