(CercleFinance.com) – The Paris Stock Exchange lost nearly 1.9% this mid-afternoon, around 7,390 points, penalized by the heavy decline of Alstom which lost more than 11% behind LVMH (-4 %).
Across the Atlantic, the S&P500 and the Dow Jones start the session down around 0.4%
‘A period of doubt often follows the euphoria at the end of the year’, analyzed this morning Christopher Dembik, investment strategy advisor at Pictet AM, for whom the visibility of the trajectory of the economy and the markets should be ‘improve’ by the end of the month’.
‘While it is not surprising to see a pause after the rapid rise in most risky assets over the last two months of 2023, we think the outlook for bonds and, especially stocks, is promising for the whole of 2024’, the Capital Economics teams assess.
Many strategists say they expect the S&P 500, the benchmark index for American managers, to reach the threshold of 5,000 points this year, which represents a theoretical increase of around 5%.
As far as Europe is concerned, analysts highlight the low valuation of shares in the Old Continent and a very marked discount vis-à-vis the American markets, which they believe is set to be reduced.
According to economists at Swiss Life Asset Managers, global stock markets show a realistic performance potential of 3% to 7% (total return) in 2024 due to the outlook for profit growth.
The attention of investors returning from vacation will focus this Wednesday on the publication in the United States of the ISM manufacturing index expected to rise for the month of December after its stability the previous month.
The markets also took note this morning of an increase in the number of job seekers in Germany. The number of applicants increased by 31,000 in December compared to the previous month, to stand at 2,637,000, or 5.7% of the active population (+0.1 point), according to the monthly report of the Federal Labor Agency.
Still on the statistics front, activity in the American manufacturing sector saw its contraction slow down last month, according to the Institute for Supply Management (ISM), whose index rose to 47.4, compared to 46.7 for the month of November.
Finally, on the bond compartment, the 10-year German Bund rate, the European risk-free rate benchmark, is moving slightly above 2%, after an end-of-year ‘rally’ described as ‘out of the norm’.
For its part, the yield on ten-year American Treasuries is also trending, around 4%%, after falling continuously for more than two months.
On the currency market, the euro rebounds without conviction and oscillates around 1.0920 dollars, with traders believing that sluggish growth, falling inflation and the prospect of monetary easing bode for a weak single currency. This year.
In the news of French companies, Kering lost almost 4% and therefore underperformed the trend in Paris, with unfavorable comments from Stifel which, while maintaining its ‘hold’ recommendation, lowered its price target from 430 to 420 euros on the title of the parent company of Gucci.
Renault claims to have outperformed the French automobile market in 2023 and to position itself at the top of PC + LCV sales (passenger cars and light utility vehicles) with 390,484 registrations, an increase of 16%.
Thales announced on Wednesday the signing of a contract for the delivery of new generation medium-range ground radars for the Lithuanian land forces.
While maintaining its ‘neutral’ position on Pernod Ricard, UBS lowers its price target from 167 to 163 euros, a new target leaving only 5% upside potential for the title of the French spirits group.
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