The Paris stock exchange continues to drift, with the CAC40 inching up by less than 0.1% (hovering near 8,125 points), buoyed by gains in Edenred (+2.4%), Saint-Gobain (+2.8%), and Stellantis (+2.6%).
Remarkably, none of the five trading sessions this week saw a fluctuation greater than 0.4%, leaving the weekly performance virtually unchanged at 0.00%.
While Wall Street is trending upward, the gains remain marginal.
US inflation figures (November PCE) were 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%--exactly as forecast.
The positive surprise came from the University of Michigan's consumer sentiment index, which rose from 52 to 53.2, with incomes increasing by 0.4% instead of the expected 0.3%.
Though this did not shake Wall Street, the upward trend prevailed and US indices approached their all-time highs (as of the current session close): the S&P500 at 6,893 (+0.55%), the Dow Jones at 48,100 (+0.5%, just 0.3% shy of a new closing record), and the Nasdaq advancing +0.9% to 25,810 (with 26,000 within reach).
The recent release of indicators confirming a slowdown in the US labor market has reinforced expectations of another Federal Reserve rate cut in December. However, caution prevails 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 the FedWatch barometer from CME Group.
US T-Bonds weakened slightly, with the 10-year yield at 4.12% and the 2-year at 3.542% (both up by 1.1 basis points).
"We are already in December, but due to the recent federal government shutdown, these figures only provide a snapshot of the situation for the month of September," Danske Bank analysts cautioned this morning. "It is important to keep this in mind when analyzing the data," the Danish bank added.
In Europe, France's trade deficit narrowed significantly to 3.92 billion euros in October (versus -5.2 billion euros expected) after 6.35 billion euros the previous month, according to seasonally and calendar-adjusted data (CVS-CJO) from Bercy.
German manufacturing orders by volume increased by 1.5% in October compared to the previous month (versus 0.5% expected), according to CVS-CJO data from Destatis, following a 2% rise in September (revised up from an initial estimate of 1.1%).
Finally, in the third quarter of 2025, seasonally adjusted GDP rose 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 French OAT 2035 yield stands at 3.515% (-0.7 basis points), while the German Bund of the same maturity is at 2.787% (+1.8 basis points), and Italian BTPs are unchanged at 3.475%.
The euro edged up 0.1% against the greenback 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 continued supply surplus in the medium term on the other. Brent remains steady around $63.4 a barrel.
Gold remains well-supported thanks to the prospect of Fed rate cuts, with the precious metal up 0.4% to $4,225 per ounce.
In French corporate news, Derichebourg 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. Additionally, the company announced it has signed an agreement with Hyundai Motor Group to strengthen their international partnership and accelerate the hydrogen economy.
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