The Paris stock market is up 0.2% this morning, hovering around 8,040 points, buoyed by gains in L'Oréal (+1.8%), Société Générale (+1%), and EssilorLuxottica (+0.9%).
Markets are closely monitoring developments regarding a potential peace process in Ukraine, as well as the increasingly likely prospect of a Federal Reserve rate cut in the United States next month.
Recent U.S. economic data have further reinforced expectations of another rate reduction by the Federal Reserve on December 10, with nearly 83% of traders now considering this scenario credible, according to the CME's FedWatch tool.
In a reassuring sign, the S&P 500 has reclaimed its 50-day moving average at 6,750 points--which had been breached a week ago--rising more than 0.9% to 6,766 points.
With risk appetite returning, market stress is easing and the "VIX" volatility index--often dubbed the fear gauge--has dropped back below the 20-point threshold, significantly calming the atmosphere.
"Once again this year, sellers find themselves on the wrong side of the markets," notes Michael Brown, strategist at Pepperstone. "The U.S. economy remains solid, earnings growth is robust, the business climate is improving, and monetary policy remains accommodative: a combination of factors clearly driving risk assets higher," the analyst adds.
"Adding to this a very favorable seasonal pattern, flows driven by FOMO (fear of missing out) at year-end, and the resumption of share buybacks, we have an environment that would be difficult--if not unwise--to bet against for the moment," he concludes.
While investors will be watching U.S. durable goods orders at 2:30 p.m., trading volumes are expected to remain thin and initiatives limited on the eve of Thanksgiving, a public holiday during which Wall Street will be closed.
In the bond market, the yield on the 10-year French OAT is at 3.41%, compared to 2.68% for the German Bund of the same maturity.
Brent crude is down 0.2% at $62.5 ahead of the U.S. oil inventory report, due at 4:30 p.m. On the forex market, the euro remains steady against the greenback, around $1.15.
In French corporate news, Dassault Systèmes announced it has deepened its partnership with Mistral AI, enabling the enterprise software designer to now offer "sovereign" AI services for regulated sectors and public administrations in Europe.
Solutions30 announced an expansion of its strategic partnership with Spirii, a provider of electric vehicle charging platform solutions, to accelerate the rollout and maintenance of EV charging stations across Europe.
Finally, Compagnie des Alpes announced that the bid submitted by its subsidiary, Société d'Aménagement de La Plagne (SAP), has been selected by the Grande Plagne Intermunicipal Syndicate (SIGP) following a competitive process.
This means SAP has been awarded a renewed Public Service Delegation (DSP) contract for the development and operation of the La Plagne ski area (lifts and slopes), as well as the management of intra-resort shuttles and the bobsleigh track.
