CAC40: the decline wins but by little, despite Nasdaq at -1.4%


(CercleFinance.com) – The Paris Stock Exchange (-0.3%) could end up a little weaker and lose contact with 6,700.
No downward pressure, volumes remain poor only 1.6 billion euros traded in 8 hours (ie less than 200 million per hour, which has become the cruising speed since mid-October).
The Euro-Stoxx50 lost -0.4%, the Dow Jones -0.6%, the S&P500 fell by -0.9% and the Nasdaq by -1.4%.

Market participants seem to want to take a break after the good performances of the last 9 weeks, which have enabled the CAC to limit its decline since the start of the year to around 6% (and even 5% last Wednesday).

An upturn is emerging in the bond markets which are erasing their losses from the previous day, the rates had risen slightly following a better than expected figure for the ISM services index reinforcing fears of further rate hikes from the Federal Reserve .
They seem to remember today that the ‘services’ PMI was symmetrically contracting.

The only figure of the day concerned the trade deficit of the United States: it widened to 78.2 billion dollars in October, against 74.1 billion dollars a month earlier (figure revised compared to the initial estimate $73.3 billion), according to the Commerce Department.

The trade deficit shows a decline of 0.7% in exports, to 256.6 billion dollars, while imports increased by 0.6%, to 334.8 billion dollars.

In the end, the deficit increased by 5.4% from one month to the next but nevertheless remained slightly below forecasts: analysts at Oddo had indeed forecast a trade deficit of 80 billion dollars for the month of ‘october.

The macroeconomic agenda looked slim in Europe on Tuesday with the publication of industrial orders in Germany, which rebounded 0.8% after being down seven times in the first nine months of the year.

The yield of 10-year Treasuries fell -4pts to 3.561%.
The yield of the Bund with the same maturity, reference rate for the euro zone, followed the movement and erased 7.5 basis points to 1.8010%, our OAT -6Pts to 2.255%, remuneration at its lowest since October 10.

US light crude fell -2% to $75.7 a barrel, despite the Russian oil embargo and OPEC+’s decision not to change its current production targets and the boycott of Russian oil and diesel. Brent from the North Sea gained 0.9% to 93.5 dollars.

The euro erased its loss from Monday at 1.0510 against 1.0480.

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