CAC40: doesn't fear censorship, benefits from WStreet records

(CercleFinance.com) - The Paris Bourse (+0.
7%) climbed back above 7,300Pts, on the back of a new wave of absolute records on Wall Street, with the Dow Jones at 45,000, the S&P500 at its zenith at 6,066, and the Nasdaq on fire (+0.8%) at 19,635, "snagging" the +30% annual mark.
The CAC40 is supported by Renault (+5%), Dassault Systèmes (+3.6%), Kering (+2%) and others.

The day promises to be a busy one for statistics and politics in France (vote on the motion of censure at the end of the afternoon).

This morning, investors have already taken note of the HCOB composite PMI index for overall activity in the eurozone. This fell sharply from 50 in October to 48.3 in November (48.3 revised unchanged), signalling a return to contraction in the eurozone private sector.

In France, the HCOB PMI composite index of overall activity fell sharply (-2.2pts) from 48.1 in October to 45.9 in November, signalling the sharpest contraction in French private sector activity since January.

This afternoon, investors were treated to the ADP private employment survey and S&P Global's 'PMI Composite': the private sector created 146,000 jobs in November in the USA, a number slightly below expectations, according to the monthly survey published by ADP on Thursday.

By way of comparison, economists were expecting an average of 158,000 private-sector jobs to be created last month in the USA.
The number of jobs created in November was revised downwards, from 233,000 to 184,000.000 to 184,000.

In addition, US private sector growth accelerated slightly less than initially estimated in November, to 54.9, compared with a flash estimate of 55.3 and 54.1 for the previous month.
The revised composite index, which nonetheless remains at a 31-month high, reflects an expansion in overall activity that continues to be driven by services, while manufacturing output is contracting again.

This latter indicator will help determine whether the victory of Donald Trump, who has promised tax cuts, is generating a degree of optimism among business leaders.

In addition to macro data, bond markets will be watching ECB President Christine Lagarde's speeches from Brussels, followed by Fed boss Jerome Powell's in New York, in order to anticipate the evolution of monetary policies on both sides of the Atlantic.

Market participants will also be keeping an eye on the political situation in France, where Michel Barnier's government is threatened by a motion of censure which could be adopted or rejected in the late afternoon.

On the bond front, US Treasuries deteriorated by +2pts to around 4.242% on the 10-year bond yield. The Bund for the same maturity (+2Pts) is trading at around 2.07%, while the OAT remains stable at 2.901%, which is the day's pleasant surprise: the OAT/Bund spread has thus narrowed to +82Pts from +88 on Monday...

In Asia, the stock markets were hesitant on Wednesday in the face of the confusion reigning in South Korea, where parliamentarians rejected the martial law decreed by Yoon Suk Yeol as a surprise measure to counter alleged threats from "North Korean communist forces".

Oil prices edged up (after +2.5% the previous day) ahead of an OPEC meeting on Thursday, which is expected to refrain from making any major decisions in the current climate of uncertainty.

North Sea Brent crude rose by 0.3% to $73.8.

In news from French companies, Pierre & Vacances-Center Parcs reports a return to positive net income for its 2024 financial year at 29 million euros, after more than a decade of net losses, as well as an adjusted EBITDA up 27% to 174.3 million, above its guidance.

Nexans announces that it has won a major contract from ScottishPower Renewables (a subsidiary of Iberdrola) for the East Anglia TWO offshore wind farm project, located around 33 kilometers off the Suffolk coast in the southern British North Sea.

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