(BFM Bourse) – The Parisian index closed lower and below 7,400 points this Monday evening. Caution characterized the day's trading at the dawn of a week which will be mainly marked by the American presidential election and the meeting of the American Federal Reserve.
The attempt at a rebound on the Paris Stock Exchange will have caused a stir. The CAC 40 begins the week on a dull note, and closes down 0.50% at 7,371.71 points.
Investors have been walking on eggshells before the presidential election which will take place on Tuesday in the United States. “The American elections will be at the center of the markets' concerns. They would like a clear result to position themselves clearly, but uncertainty dominates in this election which promises to be close. Budgetary concerns should also persist, whatever the winner”, says César Perez Ruiz, Head of Investments at Pictet Wealth Management.
A very indecisive vote
For now, the two candidates Donald Trump and Kamala Harris are neck and neck in the polls. According to projections from the site Fivethirtyeight, which aggregates the main polls carried out across the Atlantic, voting intentions at the national level are, this Monday, 48% for Kamala Harris against 46.9% for Donald Trump.
On the bond market, the prospect of a victory for the Democratic candidate pushed down the yield on 10-year US government bonds to 4.305% compared to 4.38% on Friday evening.
The other major market meeting will (exceptionally) take place on Thursday. The US Federal Reserve will deliver the verdict of its two-day monetary policy meeting.
“The November 5 election should not influence the Fed's next decision (especially since the result may not be officially known). A cut of 25 basis points (0.25 percentage points) is almost certain”, comment the economists at Oddo BHF.
While waiting for these two major events, corporate news has increased with Essilorluxottica finishing at the top of the CAC 40 (+3%) while BFM Business reported that, citing close sources, Meta could gain 4%. 5% of the Franco-Italian optical group. Essilorluxottica had previously confirmed that Facebook's parent company intended to take a minority stake in its capital.
Kering gained 1.3% benefiting from a favorable reading of speculation concerning an interest from the Italian group Moncler for the British Burberry.
On the other side of the spectrum, STMicroelectronics fell 3% as Morgan Stanley moved from “inline weight” to “underweight” on the stock. The American bank justifies its decision due to “unfavorable winds” in the automobile sector.
Schneider Electric dropped 2.3% after announcing the departure of its CEO, Peter Herweck, amid disagreements in the implementation of the company's strategy.
On other markets, the euro gained 0.1% against the dollar to 1.0988 dollars. The dollar remains under pressure due to the latest polls on the American presidential election, which are more favorable to Kamala Harris. A victory for Donald Trump is perceived as more inflationary, more favorable to the rise in bond yields, and consequently to the dollar.
Oil is rising thanks to OPEC+, a cartel which brings together member countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies. OPEC+ announced on Sunday the extension of black gold production cuts by one month.
Following these announcements, the January contract on Brent from the North Sea advanced by 2.3% to 74.81 dollars per barrel while that of December on WTI listed in New York advanced by 2.5% to 71.21 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
