CAC40: 7200 pts down, Stellantis in reverse

(CercleFinance.com) - The Paris Bourse closed the session down 0.
87% at 71974pts, penalized in particular by Stellantis (-4.8%), Crédit Agricole (-2.3%) and Eurofins Scientific (-1.8%).

Wall Street was trendless, with the Dow Jones down 0.4%, the S&P500 up 0.3% and the Nasdaq up 0.5%.

It has to be said that the first "US figure of the day" was rather reassuring: US consumer confidence improved by +2pts in November, with the Conference Board index at 111.7 versus 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 positive: new home sales fell sharply in the US in October, with high property prices and borrowing rates 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 latest speeches, Jerome Powell noted that the US economy remained solid and that there was no need to act urgently, while keeping open the option of a December cut.

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 up +7Pts at 4.325% and the '30-yr' +4.5Pts at 4.497%.

Our OATs and Italian BTPs are completely stagnant, and Bunds are moving towards 2.2060%.

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

Brent crude oil advanced 0.4% to $73.4 a barrel in London.
In French company news, Airbus signed a contract with the UK Ministry of Defense to supply next-generation modems for the country's Skynet satellite communications constellation.

On Tuesday, ArcelorMittal called for greater visibility on European energy policy before further advancing its plans to decarbonize its operations.

Finally, Atos announced today that it has once again been chosen by Eurocontrol to continue supporting its mission-critical airspace and aviation management services in Europe. This contract extension, worth 165 million euros, reflects the mutual trust between the two organizations.

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