(CercleFinance.com) – The Paris Stock Exchange consolidates horizontally and within narrow limits (-0.25%/-0.3%) after a gain of 1.3% in two sessions and the listing of its best mark around 7,450 since the beginning of August.
The Parisian index is penalized by Teleperformance (-4.3%) and Unibail (-2.3%).
From a technical point of view, chartists point out that the CAC 40 seems to want to exit at the top of the congestion zone within which the index has been consolidating for several months.
‘An overflow of this pivotal level would restart the upward movement towards the objective at 7,537 points then the upper part of the horizontal channel located at 7,592 points’, assure the Kiplink teams.
‘A crossing of this major resistance would reactivate the long-term upward trend with a target of 8015 points’, even predicts the brokerage firm in its latest market update.
In the meantime, the euro-Stoxx50 also drops -0.3%, as well as the E-Stoxx600 while Wall Street is expected stable to very slightly positive after the publication of weekly registrations: they record a somewhat unexpected drop of – 2,000 to 220,000 in the last week of November, when there usually is poaching in distribution after the ‘Thanksgiving’ weekend.
On the other hand, a clear decline in ‘sustainable’ registrations with -64,000 to 1.86 million, proof that recruitments were numerous last month… an interesting indicator on the eve of the publication of the ‘NFP’.
Reminder: ADP had published the day before a clear drop in job creation in the private sector in November (to 103,000).
T-Bonds deteriorated from 4.5 Points base to 4.17%, after having erased -87 Points in 6 weeks.
24 hours before the publication of monthly US employment figures, investors are becoming more cautious and wait-and-see, knowing that a lower figure could encourage the Federal Reserve to lower its rates.
Conversely, indicators above expectations could complicate the task of the Federal Reserve in recalibrating its monetary policy.
‘We can fear that if the American employment figures (…) or the central bank speeches planned for next week do not go in the direction of the start of a rapid easing cycle, this will lead to strong volatility on long rates which will irremediably have repercussions on stocks’, warns Christopher Dembik, investment strategy advisor at Pictet AM. ‘We must therefore be vigilant,’ warns the analyst.
So much so that some strategists are wondering if the rise in stock markets this fall hasn’t gone too far and too fast.
The markets have fallen into a gentle euphoria in recent weeks, taking as certain the advent of a ‘goldilocks’ scenario in the coming months (an economy neither too hot nor too cold).
This morning, investors took note of a slight reduction in France’s trade deficit in October thanks to a reduction in the energy bill which encouraged a decline in imports.
The trade balance showed a deficit of 8.5 billion euros, an improvement of 200 million euros according to figures adjusted for seasonal variations and working days revealed this Thursday by Customs.
Across the Rhine, after a decrease of 1.3% in September, production in German industry fell by 0.4% in October compared to the previous month, according to data adjusted for seasonal and calendar variations from Destatis.
Eurostat, for its part, confirms a contraction of 0.1% of GDP in the Eurozone in the 3rd quarter and stagnation throughout the EU.
This results in a further easing of European yields with -2Pts on Bunds and OATs, -1.5Pt on Italian BTPs.
Oil halts its debacle and recovers 1.2% towards $75.3 after hitting a floor at $74.4 this morning in London (Prince Bin Salman receives V.Putin on a state visit to Saudi Arabia today : they are the 2 largest producers of black gold in the world, tied with the United States).
In French company news, Saint-Gobain announces that it has reached an agreement with Soprema for the sale of a majority share of its polyisocyanurate (PIR) foam insulation business operating in the United Kingdom under the Celotex brand. .
Furthermore, Saint-Gobain also announced the acquisition of Menkol Industries Private Limited, an operation which ‘strengthens its positioning in specialty construction materials with high added value, in a very dynamic Indian market’.
For its part, Société Générale indicates that it has signed two agreements with the Vista Group for the total sale of its shares in its African subsidiaries Société Générale Burkina Faso and Banco Société Générale Mozambique, currently held at 52.6% and 65% respectively.
Finally, Sanofi announces that its phase III trial of Sarclisa met its primary endpoint of progression-free survival in patients with newly diagnosed multiple myeloma who were not eligible for a transplant.
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends using the buttons below.
