THE TREND
(Boursier.com) — The political situation in France does not scare investors! The CAC40, which remains on four sessions of progression, advances another 0.34% to 7,280 points after 30 minutes of trading. On the bond market, the French 10-year rate rises by around 2 basis points but the spread with the German Bund falls by 0.8 bp, a sign that the time is not (yet) for panic. Operators are nevertheless feverishly awaiting the outcome of the vote on the motions of censure against the Michel Barnier government. If the fate of the Prime Minister seems confirmed in view of the declarations of the leaders of the National Rally who promised to vote for censure, Mr. Barnier still wants to believe it. “I think it is possible that there is a reflex of responsibility,” the PM declared Tuesday evening on TF1. “I think the best interest of the country, the common good, the national interest, means something.”
In Asia, South Korean authorities promised to inject liquidity to support markets after the president declared martial law on Tuesday, renouncing it a few hours later under pressure from the population and the opposition. The Democratic Party and five other opposition parties have also submitted a motion calling for the dismissal of President Yoon Suk Yeol. The main opposition party said it would sue Yoon for treason and impeachment, as well as South Korea’s defense minister and security minister, alleging the declaration of martial law was illegal.
On the economic front, a multitude of indicators will be followed on both sides of the Atlantic this Wednesday. In Europe, it is the services PMI indices and the October PPI which will be closely scrutinized. In the United States, ADP’s report on US private employment, final durable goods orders, the ISM services index and the Fed’s Beige Book will be watched ahead of Friday’s monthly employment report.
Fed Chairman Jerome Powell is also scheduled to speak during the session at a New York Times conference in what is expected to be his last public address before the central bank’s monetary policy decision on June 18. December. Markets now estimate a 73.8% probability of a 25 basis point rate cut in two weeks, according to the Fedwatch tool.
ECO AND CURRENCIES
The euro/dollar pair reached $1.0505 this morning, stable. A barrel of Brent is trading at $73.7. An ounce of gold sells for $2,638.
RISING VALUES
* Pierre et Vacances Center Parcs soared 7.4% to 1.4 euros, sought after after its annual publication. The turnover stood at 1.913 billion euros, including 1.8 billion euros for tourist brands (+3.7%). Adjusted Ebitda was 174.3 million euros, more than double that recorded in 2019, and above guidance. It increased by 37 ME compared to the previous year (137.1 ME). Pierre et Vacances returns to positive net income after more than a decade of net losses. It stands at +28.7 ME (-20.6 ME a year earlier.
* Dry advances 1.7% to 224.7 euros. The luxury group’s Board of Directors approved the payment of an interim dividend of 2 euros per share for the 2024 financial year. Kering had paid an interim dividend of 4.50 euros last year for the same period . Although down compared to 2023, this amount reflects Kering’s desire to continue to ensure a balanced distribution ratio, indicates management.
* Nexans (+0.8% to 107.2 euros) won a major contract from ScottishPower Renewables (a subsidiary of the Iberdrola Group) as part of the East Anglia TWO offshore wind farm project. This contract, the amount of which has not been specified, represents for Nexans a crucial step in its aspiration to electrify the world of tomorrow, and to support Europe’s energy transition.
* Saint-Gobain (+0.2% to 86.3 euros) proceeded on Tuesday to the cancellation of 4,959,746 treasury shares, or approximately 1% of its capital. These shares had been purchased on the market. At the end of this operation, the total number of shares making up the capital amounts to 499 million shares and the number of securities in circulation to 497 million shares compared to 502 million at the end of December 2023.
FALLING VALUES
* Casino fell 2.5% to 1.18 euros. The distributor has signed a firm agreement relating to the sale to Groupement Les Mousquetaires of a real estate portfolio of 69 assets, mainly composed of car parks, service stations, supermarket walls and ancillary lots adjoining stores whose operational operation is now provided by the Groupement Les Mousquetaires. The sale price, of €77 million, must be received in the first half of 2025. This operation will notably reduce the financial debt of the Casino group vis-à-vis the bond lenders of its Quatrim subsidiary.
* Orange lost 1.8% to 9.5 euros at the opening of the Paris market, in the red for the fourth consecutive session. Morgan Stanley downgraded the telecoms operator’s title to ‘online weighting’ with a target of 12.5 euros. The market nevertheless remains largely positive on the issue since, according to the ‘Bloomberg’ consensus, 20 analysts are ‘buy’, 3 are ‘hold’ and none are ‘sell’. The twelve-month average objective is set at 13.15 euros.
