(CercleFinance.com) – The Paris Stock Exchange (+1.5%) flirts with 7,200: the CAC literally took off vertically at 2:30 p.m. on the publication of the American ‘CPI’… with a surge of +60 Points in one minute.
This is a rare example of an intraday ‘gap’ which causes a wave of panic buybacks and propels the CAC40 towards 7,190, or 110 Points beyond its daily lows.
The CAC index then the SBF-120 are driven by ST-Micro (the SOX jumps +3.6% on Wall Street) then the automobile compartment (Forvia +8.5%, Valéo +10%) and real estate (with Unibail at +5.8%) then all the stocks massacred in October (Worldline, Téléperformances, Alstom…).
The Euro-Stoxx50 gained +1.6% (to 4,300) against 0.1% before the US inflation figures.
It’s bullish fireworks on Wall Street with the Nasdaq back above 14,000 (+2.3% to 14,080) for the first time since the end of August (i.e. +11% in a straight line since October 26) .
The S&P500 jumped by +2% (towards 4,500, best score since September 14) and the Dow Jones by +1.5% (towards 33,850)
The publication of the latest inflation figures in the United States has completely dissipated fears of a tightening of American monetary policy in December but also by May 2024.
The gradual decline in inflation is confirmed by the Department of Labor: the American consumer price index increased by 3.2% in October compared to the same month of 2022, compared to +3.7% in the month of september.
Excluding energy and food products, two traditionally volatile categories, the annual inflation rate stood at 4% last month, a level again slightly below the broker’s forecast (4.1%).
On the bond market, the readjustment of the outlook for rate hikes has the effect of a heavy drop in Treasury bond yields, with ten-year paper relaxing by 18 basis points to 4.456%.
In Europe, the easing of OATs and Bunds seems modeled on that of T-Bonds with -15Pts on Italian BTPs at 4.416%, -13Pts and -12Pts base at 3.163 and 2.60% respectively.
At the same time, the dollar depreciated very significantly against the euro (fall of -1.3%), which took the opportunity to rise to around 1.0835 against the greenback, the highest since the beginning of September.
The Dollar Index fell -1.1% to 104.50, a ‘lowest’ since September 12.
The Euro is also strengthened against the $ and other currencies by a ZEW economic climate index for Germany – reflecting the expectations of German financial market experts – which climbed 10.9 points in November to settle at 9, 8, returning to positive territory for the first time since April.
‘Increased economic expectations are accompanied by significantly more optimistic prospects for the German industrial sector and the domestic and foreign stock markets,’ emphasizes ZEW President Professor Achim Wambach.
The latter also points to the quasi-stability (+0.1 point) of the index evaluating the economic situation in Germany, at -79.8 points, which according to him ‘confirms the impression that the economic development of Germany has reached its lowest point.
In the news of French companies, Airbus announces an order for 10 A350-900 aircraft with a capacity of 340 seats each from Egyptair, to meet the growing demand for air transport.
Technip Energies announces the creation of Reju, an innovative company which will design new solutions for the regeneration of plastic fibers contained in large quantities in textiles which are not recycled and which end up as waste.
Arkema announced last night that it had successfully placed a bond issue of 700 million euros with a maturity of 6.5 years carrying an annual coupon of 4.25% in order, among other things, to extend the maturity of its debt.
Ipsen and Genfit announce the full results of the pivotal phase III ELATIVE study which will be presented orally at the American Association for the Study of Liver Diseases (AASLD) meeting and published in the New England Journal of Medicine.
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