The Paris stock market gained more than 1% this morning, around 7,420 points, helped by Saint-Gobain (+3.5%), Eurofins Scientific (+2.7%) and Schneider Electric (+2.3%), even if volumes look set to be relatively limited on this public holiday commemorating the Armistice of November 11, 1918.
Over the past week, the Parisian market had recorded a decline close to 1%, a third consecutive week in the red which brings its losses to around 2.7% since January 1, where the Nasdaq climbed 28% in the interval, a record differential of more than 30%.
The underperformance of European stock markets increased last week, against the backdrop of 'Trump Trade', a phenomenon which resulted in a surge in all American stocks and a rise in the dollar with expectations of tax cuts promised by the next American president.
In this context, investors could continue to be cautious about shares in the Old Continent, which they consider to be more vulnerable to the economic slowdown.
'American stocks have more to offer', summarized the Pictet AM teams on Friday, judging that the less favorable conditions in Europe should push the ECB to reduce its rates more markedly than the Fed.
'Due to upcoming government spending cuts in the region's two largest economies, France and Germany, as well as disappointing growth in Europe more generally, it is likely that the ECB will have to cut rates to a lower level at a neutral rate of 2%', predicts the asset manager.
If no economic indicators or corporate results appear on today's agenda, particularly due to the closure of American public administrations for 'Veterans Day', the coming days should be richer in publications.
In Germany, the ZEW investor morale index could tomorrow reflect the impact of the political crisis due to the breakdown of the tripartite coalition that occurred last week.
In the United States, the consumer price figures which will be published tomorrow should confirm the return of inflation towards the 2% objective set by the Fed.
Retail sales, expected on Friday, could suffer from disruptions linked to hurricanes and pre-election uncertainty likely to have slowed household spending.
On the results side, several American big names will reveal their quarterly accounts over the coming days, including Walt Disney, Cisco, Home Depot, Applied Materials and Spotify.
In the news of French companies, tos announces that its subsidiary Bull has issued a preferred share for the benefit of the French State in order to protect the interests of national sovereignty in respect of certain activities carried out by Atos.
Furthermore, activity on Euronext's cash equity markets fell slightly in October, according to the latest figures published Monday by the stock exchange operator. In a press release, the group indicates that the average daily volume on its 'cash' markets fell by 3% compared to October 2023, to just over 2.3 million transactions.
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