(CercleFinance.com) – The Paris stock market lost 0.6% this morning, around 7,170 points, penalized by Thales which lost almost 7% following the announcement of the opening of an investigation in the United Kingdom ( see below) relating to alleged acts of corruption.
The Parisian index also has to deal with the sharp decline in the banking sector with Crédit Agricole, BNP Paribas and Société Générale losing between 2.6 and 2.9% each.
On the statistics front, after reporting stagnation in overall activity in October, the HCOB composite flash PMI index in the euro zone fell to 48.1 in November, highlighting the contraction in the most marked overall activity since January.
In France, the HCOB composite flash PMI index of overall activity in France fell sharply in November, having fallen from 48.1 in October to 44.8 for the current month, thus indicating the strongest deterioration in the private sector situation since January.
These figures thus confirm the sluggishness of the economy on the Old Continent, an element at the origin of the recent drop in European stock markets compared to Wall Street.
'Weak orders, political uncertainty, tariff threats from Donald Trump, nothing gives hope for a rebound in industrial sentiment,' predicts Bruno Cavalier, chief economist of Oddo BHF.
“Hope rests on the better resistance of the services,” continues the professional.
Particularly due to the clear slowdown observed in Germany, these statistics could however reinforce the hope of more aggressive rate cuts from the ECB.
The day will also be marked by the publication, during the afternoon, of the American PMI, which should once again reveal a disparity between industry and services.
Also expected in the afternoon, the household confidence index from the University of Michigan – finalized before the presidential election on November 5 – should show that consumer morale remains solid.
The euro, for its part, continues its decline against the dollar, around $1.0465, which leads it to show a decline of around 0.5% against the greenback over the whole week. .
On the energy markets, oil prices are changing little, still torn between geopolitical uncertainties and questions about global growth with a barrel of Brent moving around $74.3 in London.
In French company news, the Serious Fraud Office (SFO), the British fraud prevention body, formalized on Friday the launch of an investigation into Thales, which it says it suspects of paying bribes .
If the exact nature of the investigations is not known, Nick Ephgrave, director of the SFO, mentions 'serious allegations' of irregularities.
Furthermore, ahead of an investor day (CMD) dedicated to Vinci Energies, Vinci indicates that it expects for this division annual growth in its turnover in the mid or high single digit range on average between 2024 and 2030.
Finally, Worldline announces that it has placed a bond issue of 500 million euros maturing in November 2029 and carrying a coupon of 5.25%. Its settlement and delivery should take place on November 27 and the bonds will be listed on the Luxembourg Stock Exchange.
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