(CercleFinance.com) – The Paris Stock Exchange has started a horizontal consolidation for 48 hours around 7570 points.
The CAC40 (+0.05%) now appears frozen between 7,550 and 7,575 points, in contact with its absolute records.
The Euro-Stoxx50 increased by 0.35% (4,536) thanks to the +0.5% increase in the DAX (to 16,740) in the wake of Siemens.
The race for absolute records continues on Wall Street with the Dow Jones gaining +0.3% to 37,740 and the S&P500 gaining +0.3% to 4,755.
The Nasdaq-100 (+0.4%) achieves a double feat: it breaks an absolute record then equals its best annual performance of the century with an overall score of +53.2% (at 16,795 points).
Several members of the Fed have tried since Friday to temper the euphoria of Wall Street by judging the markets’ expectations too optimistic… but they are not ‘heard’ and the market clings to its hyper-optimistic expectations.
Last Friday, New York Fed President John Williams cooled the markets’ enthusiasm by declaring that they were ‘premature’ to consider a Fed rate cut as early as March.
Same story from his counterpart at the Atlanta Fed, Raphael Bostic, for whom a relaxation of the monetary policy of the American Federal Reserve is not ‘imminent’.
It is true that some investors are going so far as to consider ten rate cuts in 2024, a scenario considered exaggerated by some given the persistence of inflation.
On the economic front, the rise in housing starts (+14.8%) shows that the American real estate market displays paradoxical behavior: first-time buyers are absent, no one is selling their property to buy more. (situation of shortage), then solvent buyers have housing built to their liking
On the other hand, building permits for American housing – supposed to foreshadow future construction starts – fell by 2.5%.
If the last sessions before the holidays are usually buoyant, the remaining questions around interest rates could weigh on trade in the absence of real catalysts.
Except for the final inflation figures in the euro zone for November and the latest statistics on residential construction in the United States, today’s macroeconomic agenda is sparse.
The rest of the week will nevertheless be marked on Friday by the release of the ‘PCE’ inflation index in the United States – closely followed by the Fed – which will constitute the highlight of the week.
On the bond market, the bullish ‘rally’ of recent weeks shows a slight pause, but it remains in the nature of consolidation or a simple technical ‘pullback’.
Around 3.895% (-5.3Pts), the yield on ten-year Treasuries remains well below the technical threshold of 4%, while that of the German Bund at the same maturity, reference for the entire euro zone, stands at 2.008% (-0.5Pt), our OATs at 2.523% (-2Pts).
On the energy side, oil rebounded by +1.5% towards $79.2 on Brent.
In French company news, TotalEnergies announces a second renewable electricity sales contract (CPPA) with the petrochemical company LyondellBasell, to which it will now supply 275 MWac (358 MW) of green electricity from its solar farms in Cottonwood Bayou and Brazoria Solar, Texas.
Virbac indicates that it is now counting, for the year which is ending, on growth in its turnover at constant exchange rates and scope of around 4%, and no longer between 2% and 4%.
Finally, Thales announces that it has partnered with SK Telecom (SKT), Korea’s largest mobile operator, to successfully carry out advanced stress tests in post-quantum cryptography.
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