The Paris stock market gained more than 1% this morning, towards 7420 points, helped by Saint-Gobain (+3.5%), Eurofins Scientific (+2.7%) and Schneider Electric (+2.3%), even if volumes were relatively limited on this public holiday commemorating the Armistice of November 11, 1918.

Over the past week, the Paris market had posted a decline of close to 1%, a third consecutive week in the red, bringing its losses since January 1 to some 2.7%, while the Nasdaq has climbed 28% in the meantime, a record differential of over 30%.

The underperformance of the European stock markets worsened last week, against the backdrop of the Trump Trade, a phenomenon that saw all US equities soar and the dollar rise on expectations of tax cuts promised by the next US president.

Against this backdrop, investors may continue to be cautious on Old World equities, which they see as more vulnerable to the economic slowdown.

'US equities have more to offer', summarized Pictet AM's teams on Friday, judging that less favorable conditions in Europe should push the ECB to cut rates more sharply than the Fed.

Given the forthcoming cuts in public spending in the region's two major economies, France and Germany, as well as disappointing growth in Europe more generally, it is likely that the ECB will have to cut rates below the neutral rate of 2%", the asset manager predicted.

While there are no economic indicators or company results on today's agenda, due in particular to the closure of US public administrations for "Veterans Day", the next few days should be richer in publications.

In Germany, tomorrow's ZEW investor sentiment index could reflect the impact of the political crisis caused by last week's break-up of the tripartite coalition.

In the United States, tomorrow's consumer price figures should confirm inflation's return to the Fed's 2% target.

Retail sales, expected on Friday, could be affected by hurricane-related disruptions and pre-election uncertainty, which may have dampened household spending.

On the earnings front, a number of US majors will be unveiling their quarterly accounts in the coming days, including Walt Disney, Cisco, Home Depot, Applied Materials and Spotify.

In other French company news, tos has announced that its subsidiary Bull has issued a preference share to the French government in order to protect national sovereignty interests in respect of certain activities carried out by Atos.

In other news, activity on Euronext's cash equity markets fell slightly in October, according to the latest figures published Monday by the stock exchange operator. In a press release, the group states that average daily volume on its cash markets was down 3% on October 2023, at just over 2.3 million transactions.


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