The Paris Bourse is off to a flying start this week (as suggested by a +1.2% gain to 7.425), but this is taking place in almost non-existent volumes (1.45 billion euros at 1/2 hour to the fixing), which is allowing prices to rise with a derisory stake and by relying on 2 or 3 locomotives such as Saint-Gobain (+3.6% and an all-time record above 89 euros), Schneider Electric (+3.4% and an all-time record at 249.1 euros), and ST-Micro (+2.5% in the wake of the Nasdaq, which registered a new all-time high at 19.366).

All stock markets are open on this holiday commemorating the Armistice of November 11, 1918, and the Euro-Stoxx50 climbs +1.3% to 4,860, while Wall Street smashes a 4th consecutive all-time record, with the potential for further intraday/close doubles.
The Dow Jones (+1.1%) sets a new high at 44,480Pts, the S&P500 (+0.2% to 6.018) and the aforementioned Nasdaq Composite.
The Russell-2000 (+1.3%) also set a new 2024 record at 2,430 (with an opening gap to boot), while the Wilshire-5000 (+0.5%) broke through 60,500... it's a new all-round record the likes of which Wall Street has never seen in 53 years (since the Nasdaq came into existence, i.e. February 1971).

The underperformance of European stock markets worsened last week (-1% on average, a loss wiped out today), against the backdrop of the 'Trump Trade', a phenomenon which has led to a surge in all US equities and a rise in the dollar on expectations of tax cuts promised by the next US President.

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

U.S. equities have more to offer", Pictet AM's teams summed up on Friday, judging that less favorable conditions in Europe are likely to push the ECB to cut rates more sharply than the Fed.

"Due to upcoming public spending cuts 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%", predicts the asset manager.

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.
In the meantime, fixed-income markets are looking gloomy, with T-Bonds down +3.5pts to 4.345% (note that the 2-year remains stable at 4.252%).
In Europe, our OATs are down -4.5pts to 3.0760%, Bunds -4.6pts to 2.30400% and Italian BTPs -7.7% to 3.564%.

On the results 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 in favor of the French state, 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 by the stock exchange operator on Monday. 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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