The Paris stock exchange returned to square one as the CAC40 slipped by 0.1%, threatening to dip back into negative territory below 8,120 points.
Remarkably, none of the five trading sessions this week saw a move greater than 0.4%, leaving the weekly performance virtually flat at 0.00%.
The Euro-Stoxx50's gains narrowed to +0.2%, though the index still posts a +1.1% weekly increase.
Wall Street remains largely in the green, albeit marginally. U.S. indices are content with this, as they once again approach record highs (assuming the session closed at current levels): the S&P500 stands at 6,890 (+0.5%), the Dow Jones at 48,000 (+0.3%, just 0.5% shy of a new closing record), and the Nasdaq advances by +0.45% towards 25,700, with the 26,000 mark now within reach.
U.S. inflation data (November PCE) was highly anticipated, but once again proved to be a "non-event," with the rate unchanged at 2.8% and a sequential increase of +0.3%--as expected.
The positive surprise came from consumer sentiment (the University of Michigan Consumer Confidence Index), which rose from 52 to 53.2, while incomes climbed by 0.4% instead of the 0.3% forecast.
Recent indicators confirming a slowdown in the U.S. labor market have reinforced expectations of another Federal Reserve rate cut in December. However, caution remains warranted given the persistence of core inflation in recent months.
Consensus for a third rate cut stands at 87%, up from 68% a month ago, according to CME Group's FedWatch barometer.
U.S. Treasuries saw a more pronounced sell-off, with the 10-year yield at 4.137% and the 2-year at 3.561% (both up 3 basis points, respectively).
"We are already in December, but due to the recent federal government shutdown, these figures will only provide a snapshot of the situation for September," Danske Bank analysts noted this morning. "This should be kept in mind when interpreting the data," the Danish bank added.
In Europe, France's trade deficit narrowed significantly to 3.92 billion euros in October (versus the -5.2 billion anticipated) after 6.35 billion the previous month, according to seasonally and calendar-adjusted data from Bercy.
German manufacturing orders by volume rose by 1.5% in October compared to the previous month (versus 0.5% expected), according to seasonally and calendar-adjusted figures from Destatis, following a revised 2% increase in September (up from an initial estimate of 1.1%).
Finally, in the third quarter of 2025, seasonally adjusted GDP increased by 0.3% in the eurozone (versus 0.2% expected) and by 0.4% in the EU compared to the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union.
On the bond market, the 2035 French OAT yield stands at 3.531% (+1 basis point), while a Bund of the same maturity yields 2.797% (+2.8 basis points), and Italian BTPs are down (2 basis points higher at 3.491%).
The euro edged up 0.1% against the dollar to 1.165 USD, Brent crude gained 0.7% to $63.75, and WTI rose 0.8% to $60.15.
After their recent rebound, oil prices are treading water, caught between geopolitical uncertainties and expectations of a Fed rate cut on one hand, and the prospect of a continued supply surplus in the medium term on the other. Brent remains steady around $63.4 per barrel.
Gold remains well supported thanks to the prospect of Fed rate cuts. The precious metal is up 0.4% at $4,225 per ounce.
In French corporate news, Derichebourg (+14%) reported a sharp 63% increase in net profit to 122 million euros for its 2024-25 fiscal year, "thanks to the significant contribution from Elior Group, which is expected to grow substantially in the coming years."
Air Liquide will invest approximately 25 million euros to modernize its air separation unit (ASU) in Yulin, Shaanxi province. The company also announced it has signed an agreement with Hyundai Motor Group to strengthen their international partnership and accelerate the hydrogen economy.
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