(CercleFinance.com) – After jumping 2.2% yesterday, the Paris stock market added +0.6% and thus garnered +2.8% in 2 sessions, one of the most beautiful bullish sequences since mid-September (the annual score reached +1.5%, this is quite unexpected given the economic situation and political uncertainties… and now the level of long-term rates).
The CAC40 erases the resistance of 7,480 then approaches 7,500 points (around 5 p.m.), notably supported by URW and ST-Micro (+2%) then the inevitable Schneider (+1.5%) and Sanofi.
Wall Street, which will be closed on January 9 (commemoration day in honor of Jimmy Carter, who died at age 100), corrects in the wake of the bondholder,
with T-Bonds soaring by 8 points to 4.696% since the publication of the US ISM ‘services’: the Dow Jones lost 0.1%, the S&P500 -0.5% and the Nasdaq -1.20%.
The bond markets have just lost all the benefit of the ‘good’ inflation figure in Europe: it came out as expected – at 2.4% in December 2024, compared to 2.2% in November according to a rapid estimate published by Eurostat, l statistical office of the European Union.
Looking at the main components of eurozone inflation, services are expected to see the highest annual rate in December (4.0%, compared to 3.9% in November), followed by food, alcohol & tobacco (2.7%, stable compared to November), industrial goods excluding energy (0.5%, compared to 0.6% in November) and energy (0.1%, compared to -2, 0% in November).
Furthermore, in November 2024, the seasonally adjusted unemployment rate in the eurozone was 6.3%, stable compared to the rate recorded in October 2024 and down compared to the rate of 6.5% recorded in November 2023.
The EU unemployment rate was 5.9% in November 2024, also stable compared to the rate recorded in October 2024 and down from the rate of 6.1% recorded in November 2023.
Across the Atlantic, investors took note of the United States trade deficit: it increased to 78.2 billion dollars in November, compared to that of 73.6 billion the previous month (which was slightly revised by an initial estimate of 73.8 billion), according to the Department of Commerce.
This 6.2% increase in the deficit from one month to the next results from a 3.4% increase in American imports of goods and services, to 351.6 billion dollars, therefore surpassing an increase of 2. 7% of exports, at 273.4 billion.
Another figure closely followed in the US is the growth in activity in the service sector in the United States which accelerated more than expected in December, shows the monthly survey from the Institute for Supply Management (ISM ) published Tuesday.
The ISM services index rose to 54.1 from 52.1 the previous month, while economists on average expected a figure of 53.5.
The indicator is above the threshold of 50 points reflecting growth in activity for the 52nd time in 55 months, that is to say since the recovery following the Covid epidemic which started in June 2020.
The sub-index measuring activity in the tertiary sector rose to 58.2 from 53.7 in November, while that of new contracts improved to 54.2 from 53.7 the previous month.
That of employment fell to 51.4 against 51.5 in November, prices paid having accelerated to 64.4 after 58.2.
The Euro has reversed course against the greenback since the publication of the ISM: it has fallen from 1.042$/E towards 1.0370, or -0.15 to -0.2%.
On the bond market, after a very good session the day before, our OATs erased their gains with +4 points at 3.3040%, the Bunds posted +3 points at 2.478%, the British ‘Gilts’ continued to sink into the crisis : nothing is going well with a ’10 years’ which displays +12Pts and which exceeds 4.7350%, worst score since 25 years (in fact since 1998).
On the oil markets, Brent prices climbed +1% to $77 per barrel.
In French company news, Spie announces the appointment of Evert Lemmen to the position of Managing Director of Spie Nederland and, as such, member of the group’s executive committee, as of February 1, 2025, succeeding in these functions to Lieve Declercq.
EDF announces the success of its multi-tranche senior bond issue for a nominal amount of $1.9 billion, an operation which allows it to finance its strategy and its objective of contributing to achieving carbon neutrality by to 2050.
