CAC40: ends at equilibrium as rates ease
A few yield points have been erased since 1 p.m., and investors are breathing a little easier.
In New York, the Dow Jones climbed from -0.8% to -0.2%, the S&P500 posted -0.2% and the Nasdaq-100 returned to equilibrium thanks to Nvidia and a new record at $144 ($3,525 billion in 'capi' versus $3.550 for Apple).
The upturn in bond prices is welcome, but the reality is that, despite long yields having recovered almost 50pts since the end of September, Wall Street is not letting up, and has been racking up record highs until the last 48 hours.
The yield on the '2034' T-Bond reached 4.225%, while the yield on the '30-yr' was over 4.520%, i.e. +60pts since the opening on September 17, and +45pts since October 1 (the worst mark for the '30-yr' since July 25).
Treasuries sold off aggressively across the curve, while equities weakened and the dollar extended its recent run", notes Michael Brown, Senior Research Strategist at Pepperstone.
He also notes that "the pace of earnings releases is accelerating today, with a busy list ahead of the opening, including defense giants Lockheed Martin and RTX, as well as classic barometer 3M".
Participants, naturally, will expect the strong earnings performance seen so far to continue, as the S&P remains poised for its fifth consecutive quarter of year-on-year earnings growth', he continues.
Note the absence of any major figures on the agenda to justify the tension in rates at the start of the week.
Our OATs are down +3.8pts (3.049%), while Bunds are up +3.15pts at 2.311% (compared with 2.333% at around 1pm, the worst score since September 2 or July 29).
On the FOREX, the Dollar is up a further 0.1%, pushing the Euro back towards 1.0800.
Note the new record for the ounce of gold at $2,743/Oz (up $3 on Monday), while silver now stands at $34.65/Oz... and the +1.3% rebound in oil to $75 in London.
In Paris news, Eurofins Scientific reports sales growth of 6.7% to 5.14 billion euros for the first nine months of 2024, including organic growth of 5.2% for its core business (i.e. excluding Covid-19 revenues).
Interparfums reports third-quarter 2024 sales of €257.6 million, up 20% (+20.2% at constant exchange rates) on the same period in 2023, 'reflecting continued strong momentum for the Group's flagship brands'.
Wendel states that it has entered into a definitive partnership agreement to acquire 75% of Monroe Capital, a transaction that 'considerably broadens its asset management platform, and strengthens its growth and recurring cash generation profile'.
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