(CercleFinance.com) – The Paris Stock Exchange is not giving up as the December stock market has just started: the CAC continues its rise in this ‘3 witches’ session which concludes one of the best November stock market months of the last 20 years .
The CAC remains up 0.9% to 7,233 points and is currently gaining 2.7% weekly (in a sustained volume of €3.5 billion), and has gained more than 6% since October 20.
The euro-Stoxx50 is not to be outdone with +0.9% at 4,340 Points and +3.3% over the week.
On Wall Street, the American stock markets are for the moment without direction (the S&P500 gains 0.1%, the Doiw Jones is stable) are also heading towards an almost 100% positive week, with a weekly increase in of the order of 2% for the Dow Jones as for the Nasdaq which will try to align a 14th session of increase out of 16 (therefore a ratio of 7 increases for a single session of symbolic decline).
If investors are now clearly betting on an end to the cycle of monetary tightening by the major central banks, the slowdown in inflationary pressures has not completely reassured them.
‘It is clear that the central banks’ fight against inflation is far from over,’ says Thomas Hempell, economist at Generali Investments.
‘Rates will likely remain at their current level during an extended pause – with the first rate cuts unlikely before the second half of 2024,’ the analyst underlines.
US T-Bonds deteriorate marginally; the ’10 years’ returns to 4.462%, but erases nearly 20 basis points over the week.
Little movement in Europe where Bunds show -0.5Pts (2.5830%); Italian OATs or BTPs are completely frozen at 3.418% and 4.348% respectively (the week ends with an average relaxation of -15Pts).
The economic data published this week were mixed but operators mainly noted the moderation of inflation.
The Commerce Department reports a 1.9% increase in housing starts in the United States in October, to 1,372,000 at an annualized rate, a level rather above economists’ expectations.
Likewise, building permits for American housing – supposed to foreshadow future housing starts – increased by 1.1% to 1,487,000 at an annualized rate last month, also exceeding the consensus.
The oil market is trying to halt its correction due to the increasingly serious prospect of a slowdown in the global economy, but is also heading towards heavy losses over the week.
Brent nibbles 1% to $78.25 per barrel while American light crude (West Texas Intermediate, WTI) recovers towards $73.5.
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