CAC40: Europe widens its losses against US indices

(CercleFinance.com) - The Paris Bourse (-0.
8% to 7,135) will break through the 7,200 barrier, but will close well off its mid-day lows (-1.2% to 7,095).
European markets continue to widen their gap with US indices, averaging -0.7% (the Euro-Stoxx50 is threatening the crucial 4,730 support level), while Wall Street is shedding -0.4% (S&P500).730 support level), while Wall Street (S&P500) lost -0.4%.

Wall Street's heaviness prevailed after the publication of an impressive salvo of US indicators, released in anticipation of the Thanksgiving holiday in the USA.

The main "macro" indicator was GDP (growth of the US economy "revised" to 2nd estimate), which reached an annualized 2.8% in the third quarter.
The Commerce Department points out that the upward revision to investment compared with the previous estimate was offset by a downward revision to exports and consumer spending.

The most eagerly awaited figure was the price "component": the US PCE rose by 2.3% in October at an annual rate, in line with expectations, after 2.1% in September. In the core version, it rose by 2.8% year-on-year, as expected, following a 2.7% increase in September

The Labor Department announced that 213,000 new jobless claims were registered in the US in the week ending November 18, down by 2,000 on the previous week, when the figure was revised from 213,000 to 215,000.
Finally, the number of people receiving regular benefits rose by 9,000 to 1,907,000 during the week of November 11, the most recent period available for this statistic.

The Labor Department adds that this is the highest level of insured unemployment since November 13, 2021 (when it stood at 1,974,000).
n October, sales promises rose by 2% in the USA, against an expected fall of 2.1%. They had risen by 7.5% in September.

US durable goods orders rose by 0.2% between September and October (versus -0.4% in September), according to the Commerce Department.
Excluding the transportation sector, US durable goods orders rose by 0.1% last month, still at a sequential rate.
Meanwhile, shipments of durable goods by US industry fell by a further 0.6% month-on-month, impacted in particular by the downturn in defense shipments (-0.8%).

Lastly, promised new home sales rose by 2% in October in the US, against an expected fall of 2.1% (they had risen by 7.5% in September).

Unsurprisingly, the minutes of the last Federal Reserve meeting - published yesterday evening - showed that the US central bank had not predefined any particular path for its monetary policy, but that it remained as dependent as ever on the evolution of economic statistics.

The yield on 10-year US Treasury notes eased by -4pts to 4.265%, the '2-year' by -3pts to 4.224%, while its German equivalent for the same maturity was down -3pts to 2.166%, our OATs only -0.6pts to 3.0190%... the Greek '10-year' falling below 3.03%.
Note a further fall in the 'GfK' consumer confidence index in Germany from -4.9 points to -23.3.
The divergence between German Bunds and French OATs is widening, with the spread now reaching 87 basis points, its worst score since dissolution on June 9.

The dollar corrected after a new test of 1.0465/E on Tuesday, and the euro (+0.7%) took advantage of this to return to the vicinity of 1.0560 against the greenback.

On the energy front, the oil market seems little affected by the entry into force of a ceasefire in Lebanon after two months of conflict between Hezbollah and Israel

Brent crude is stable at around $73, while US light crude (West Texas Intermediate, WTI) is also up 0.2% at $68.9.

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