CAC40: declines after Bayrou appointment, W-Street stable

(CercleFinance.com) - The Paris stock market consolidates by a margin of -0.
2% to -0.3% (around 7,400): the CAC40 returns to its opening levels after having risen to around 7,450... and ends the week with a status quo (on a weekly basis).
The Paris market welcomes the nomination of François Bayrou without emotion, after "stormy exchanges" with President Macron in the morning (all the press is echoing this).
François Bayrou represents 36 deputies out of 577 in the Assembly, and is part of the coalition defeated in the European and legislative elections: the question is 'how long before he is censured'?
The Socialist Party announces that it will not participate in the government, the RN will not 'censure on principle'... unlike LFI, which denounces a denial of democracy.
Bonds seem to be reacting a little negatively, with OATs up +5pts at 3.015%, but Bunds are in fact up +4.6pts at 2.2360%, so the spread is fluctuating at the margin, at +77.8pts.

Yesterday, the ECB decided to cut its key rates for the fourth consecutive time this year. The institution's monetary policy statement and the press conference given by its President, Christine Lagarde, also reinforced expectations of further monetary easing in 2025.

While this prospect is generally favorable for equity markets, some observers were disappointed by the tone of the ECB's speech and its lack of willingness to further support growth with a much more accommodating monetary policy.

Ann-Katrin Petersen, strategist at the BlackRock Investment Institute, notes that the central bank did not really reserve a 'Christmas present' for the markets, ruling out the implementation of more substantial support measures.

"Yet, despite encouraging signs of a recovery in private consumption, the eurozone is facing obstacles to growth, ranging from rising US tariffs to growing geopolitical fragmentation and political uncertainty in several countries", explains the professional.

Wall Street reopened higher, and the Nasdaq even set a new record at 20,061 (up +0.7%), but this was almost entirely due to Broadcom, which soared +21% on Thursday evening's 'hot' results.
The S&P500, initially up +0.3%, slipped back into the red by -0.1%, as did the Dow Jones.

On the statistics front, US import prices rose by 0.1% in November compared with the previous month (stable excluding fuel), according to the Labor Department, while export prices stagnated (+0.1% excluding agricultural commodities).

On a rolling 12-month basis, US import and export prices rose by 1.3% (+2.3% excluding fuel) and 0.8% (+1.2% excluding agricultural commodities) respectively last month.

In Europe, investors took note of a number of data this morning.
CVS industrial production remained stable in the eurozone and rose by 0.3% in the EU, according to Eurostat's first estimates.

In the eurozone, it rose by 1.7% for capital goods, remained stable for intermediate goods and fell by 1.9% for energy, by 1.8% for durable consumer goods and by 2.3% for non-durable consumer goods.

In September 2024, compared with August, industrial production was down by 1.5% in the eurozone and by 1.4% in the EU. Compared with the same month in 2023, it fell by 1.2% in the eurozone and 0.8% in the EU in October.

Over the year as a whole, consumer prices in France rose by 1.3% in November 2024, a slight acceleration after +1.2% in October, according to Insee, which confirms its provisional estimate for last month.

In Germany, the trade surplus fell in October, according to official data published on Friday, confirming the current difficulties of Europe's leading economy.

The trade surplus came to 13.4 billion euros in seasonally and calendar-adjusted figures, after reaching 16.9 billion in September, announced Destatis, the Federal Statistical Office.
On the currency front, the euro, buoyed by rising yields in the wake of the ECB meeting, advanced by +0.2% to 1.0490 after again threatening its $1.0465 support.

In French company news, Smulders (Eiffage Métal's Belgian subsidiary) has won the EPC (Engineering, Procurement and Construction) contract awarded by Chantiers de l'Atlantique, acting on behalf of RTE, for the jackets foundations of the two electrical substations of the future Centre Manche 1 and Centre Manche 2 offshore wind farms.

Teleperformance states that its Board of Directors has decided to cancel 864,458 treasury shares, representing 1.42% of the share capital, in accordance with the authorization given by the AGM of April 13, 2023.

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