(BFM Bourse) – The Paris Stock Exchange shows an increase on the eve of the vote on the Barnier government’s mentions of censorship. The CAC 40 gained almost 0.3% this Tuesday evening.
The Paris Stock Exchange is resisting. The Parisian index closed up 0.26% at 7,255.42 points this Tuesday evening, but saw its gains clearly decline compared to the start of the session. It must be said that the political climate in France makes any attempt at a big rebound in the Parisian star index complicated.
The government of French Prime Minister Michel Barnier will in fact decide on its fate on Wednesday, during a debate followed by a vote on two motions of censure, one tabled by the New Popular Front (NFP) and the other by the National Rally (RN). To the extent that the RN has indicated that it will adopt the NFP motion (but not the other way around), the government should fall. The first result is expected around 8 p.m., according to AFP.
For now, investors are not panicking. The yield gap between the 10-year French bond and that of Germany of the same maturity, a thermometer of market stress on the tricolor signature, is narrowing a little. It stood at 85 basis points (0.85 percentage points) while it had reached 88 basis points on Monday.
Record in Frankfurt
In a note written this Tuesday, Morgan Stanley bank strategists nevertheless estimate that if the government finds itself censored, and therefore the various budgetary texts are not adopted, this gap could exceed 95 basis points.
Note that Frankfurt crossed the threshold of 20,000 points for the first time in its history, and broke its session record at 20,038.01 points and at closing at 20,016.75 points.
On Wall Street, the trend is mixed this Tuesday following the records of the S&P 500 and the Nasdaq. At the close of European markets, the Dow Jones was down 0.3%, the S&P 500 was almost in balance while the Nasdaq gained 0.2%.
American investors took note of data relating to the job market for the month of October which highlighted an increase in job offers. According to the US Department of Labor’s JOLTS report, the number of job openings reached 7.74 million in October, compared with 7.37 million in September.
But from one year to the next, the trend is more deteriorating with the number of open positions falling by 941,000 units. “The data from the JOLTS report offers favorable grounds for the Fed (American Federal Reserve, Editor’s note) to further relax its monetary policy” in December, indicated Samuel Tombs, of Pantheon Macroeconomics, cited by AFP.
The auto parts blues
On the value side, Stellantis regained 1.9% after losing 6.4% the day before following the announcement of the resignation of Carlos Tavares.
Excluding the CAC 40, Forvia and Valeo fell by 4.8% and 2.3% respectively, the two automotive suppliers having also been downgraded to “neutral” from “buy” by UBS.
At the level of the smallest values, the catamaran specialist Catana gained 9.2% after reporting significantly improved results for its entire 2023-2024 financial year.
On other markets, the euro gained 0.1% against the dollar to 1.0516 dollars. Oil is rebounding strongly, driven by new US sanctions against Iran and hopes of new stimulus measures in China. The February contract on North Sea Brent gained 2.5% to $73.65 per barrel and the January contract on WTI listed in New York jumped 2.9% to $70.06 per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
