The Paris Bourse is staying the course in the early afternoon, pending an opening that promises to be slightly bullish once again in New York.
Several statistics were scheduled across the Atlantic, including household spending and income for the month of November. While income rose 0.4%, spending, which was more closely watched, for its part climbed 0.6%. Figures fully in line with consensus expectations. The deflator, a measure of inflation, is also in line with expectations (+ 0.6% over one month).
Weekly jobless claims stood at 205,000, stable from 206,000 the previous week and, again, in line with analysts’ expectations. Finally, durable goods orders are up more than expected, to 2.5% in November (+ 1.8% expected). We are still awaiting new home sales for the same month and the final consumer confidence index in December as measured by the University of Michigan.
Around 2:45 p.m., the Cac 40 advanced 0.31%, to 7,073.02 points, in a meager trading volume of 937 million euros. In New York, futures contracts on leading indices gained 0.15% to 0.25%.
A triple “headwind” well absorbed
” For the first time since Thanksgiving, markets appear to calm down as volumes level off as Christmas approaches, says Chris Hussey, managing director of Goldman Sachs for CNBC. The triple headwinds of increasing virus cases, a more offensive Fed and uncertain fiscal stimulus are well absorbed at current equity valuation levels. “
For now, December, traditionally the quietest for the markets, is the most volatile of this year 2021, according to calculations by Bespoke Investment Group, based on the daily movements of the S&P 500 since 1953. ” the news flow is negative in the near term as the Omicron wave raises concerns about how corporate earnings will move, but investors are increasingly bullish beyond the next few weeks », Explains Adam Crisafulli, at Vital Knowledge.
Good news, however, on the health front, and likely to fuel the optimism of operators. Pfizer’s Covid-19 pill has been urgently authorized by the United States Medicines Agency (FDA), which could provide millions of sufferers with access to treatment. In addition, studies conducted in South Africa and the United Kingdom revealed yesterday that the risks of hospitalization are lower with Omicron than with the Delta variant.
Automotive OEMs at the forefront
On the value side, Airbus (+ 0.3%) won with the French Ministry of the Armed Forces a contract worth 10 billion euros for the supply of 169 helicopters called “Guépard” and which are a military version of the H160. Deliveries will begin in 2027.
Among the strongest increases of the day, we find especially the automotive suppliers (+ 3.7% for Plastic Omnium, + 2.6% for Valeo, + 2.3% for Burelle, parent company of Plastic Omnium, and + 3% for Faurecia). Germany’s Continental has said it could hit the upper end of its 2021 margin forecast, given the resumption of vehicle production in the fourth quarter.