The CAC40 rebounds by +0.5%, despite a vigorous start to the week on Wall Street.

There were no major geopolitical developments over the weekend, and there is some relief (Iran in particular has not yet become involved in the Israel/Hamas conflict).
The Paris Bourse is off to a good start this week (+0.75% to 6. 842), after suffering a marginal loss last week.842) after suffering a marginal loss last week.

The CAC40 fared much better than the S&P500 or the Nasdaq (weekly decline of -2.5%), which is why Wall Street initially rebounded more vigorously, with +1% for the Dow Jones, +0.7% for the S&P and +0.8% for the Nasdaq.
Once again, the small caps underperformed, with the Russell-2000 breaking down at just 0.2%.
The Euro-Stoxx50 has lost half of its initial gains, posting +0.4% at 4,030: as with the CAC and US indices, this is far from enough to return to its former support levels.

While the earnings season entered its most intense phase last week, the week ahead looks set to be another busy one for corporate quarterly results, culminating in Apple's results this Thursday evening.

At this stage, almost half of the S&P 500 companies have already published their quarterly results, and 78% of them have exceeded consensus (a classic ratio), according to data published by FactSet.

The week will also be punctuated by the meeting of the US Federal Reserve (verdict Wednesday at 8pm), which is expected to confirm its pause on rates in view of the confirmed slowdown in inflation (despite very high levels of consumption and a very resilient labor market).

Monetary policy decisions by the Bank of Japan (BoJ) tomorrow and the Bank of England (BoE) on Thursday will also be closely watched by the markets.

The macroeconomic agenda for the days ahead also promises to be busy, with the first estimates of economic growth in the eurozone for the third quarter.
Germany posted a -0.1% decline in Q3 GDP (Destatis CVS-CJO data) and the annual inflation rate stood at +3.8% in October 2023, its lowest level since August 2021 (also +3.8%) but down from 4.5% in September, according to the preliminary estimate from the Federal Statistics Office.

Destatis also indicates that consumer prices should remain unchanged on September.
In Spain, inflation came in at +3.5% in October.

But the highlight of the week will be the US non-farm payrolls for October, due out on Friday at 2:30 p.m.

Economists expect only 190,000 new jobs to have been created last month, a marked slowdown on the 336,000 created in September.000 in September, due to the impact of the strike launched by the UAW union (an agreement has just been signed by Ford and GM which puts an end to the partial paralysis of production lines).

Investors will also be keeping a close eye on the bond compartment, where T-Bonds are trading around 4.895% (+5pts) after breaking through 5% last week, a level not seen since 2007.

The German Bund is hovering around 2.8330% (stable) and the OAT is stagnating at around 3.437% (-1Pt). Italian BTPs eased sharply (-7Pts) to 4.738%.

Oil prices extended last week's decline due to a less favorable outlook with the expected slowdown in global growth. Brent crude is down 2.7% to $88 a barrel, while WTI is down 2.8% to $82.8 on the NYMEX (its October 6 low, tested on the eve of the October 7 Hamas massacre)... but the absence of further tensions in the Middle East is also helping to ease investors' minds.
On the FOREX, the dollar is down -0.45% against the major currencies, while the euro is up +0.5% towards 1.0620.

In French company news, Eutelsat announced on Friday evening that it had signed a new agreement with PSSI Global Services to renew and extend its partnership for capacity on board its Eutelsat 113 West A satellite.

ArcelorMittal announced on Saturday that a tragic accident had occurred at its Kostenco coal mine in Kazakhstan, leaving 25 employees confirmed dead and 21 still missing.
The steel group also confirmed that it had entered into discussions with the Kazakh government regarding the future of ArcelorMittal Temirtau, and had recently signed a preliminary agreement for a transaction that will transfer ownership to the state: nationalization should be effective shortly, an agreement having been confirmed this morning.

Finally, Riber posted sales of €16.2 million for the nine months to September 30, 2023, up 33% on the first nine months of 2022, thanks to its reinforcement in the field of MBE systems for production.


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