CAC40: heaviness prevails, W-Street and oil on the decline
The main New York indices are trading in mixed order, with the Dow Jones at -0.45%, the S&P at -0.9% and the Nasdaq at -1.2%: if the session were to end on the same note, these 2 indices would record their sharpest correction since October 26.
Investors may be tempted to take profits following a sequence of five consecutive weeks of gains: after recovering more than 12% from its October 27 low, the S&P 500 is now just 5% off its all-time high reached in early 2022.
The Dow Jones is back to within 1% of its highs of early 2020 or February 2022.
While December is traditionally a good month for the equity markets, it is starting off with a degree of nervousness ahead of the US job creation figures for November, due on Friday.
After the better-than-expected inflation indicators published in recent weeks, this statistic promises to be decisive for the evolution of the Federal Reserve's monetary policy.
As in previous months, investors are hoping for a half-and-half figure that will give the Fed additional arguments for cutting rates.
Fed boss Jerome Powell said on Friday that it was premature to talk about a rate cut and assured investors that a rate hike remained on the table, but the markets seem to have decoded another message that said 'we'll cut rates sooner rather than later'.
Friday's statistic will be preceded on Tuesday by the ISM services index, then on Wednesday by the ADP survey of private-sector job creation, while awaiting the Michigan consumer confidence index on Friday.
Other indicators on the week's menu include services PMIs in Europe, retail sales and 3rd-quarter GDP in the eurozone, and final inflation figures in Germany.
The easing of the past 5 weeks has come to a halt in the US bond market: the 10-year yield has recovered +2pts to 4.242%, but is still at its lowest level since the end of August.
On the other hand, yields continued to ease in Europe, with the German Bund erasing a further -2pts to 2.3430%, confirming the prospect of a recession in the second half of 2023.
The OAT 2033 followed suit with -2pts to 2.908%, while the Italian 10-year stabilized at 4.100%.
Given the inverse trajectory of yields on Monday, the euro continues to weaken (-0.4%) to 1.0840 against the greenback, while the oil market confirms its bout of weakness, with the production cut announced by OPEC+ on Thursday failing to offset signs of a slowdown in demand.
Brent crude loses 1.5% to $78.5, while US light crude (West Texas Intermediate, WTI) loses 1.3% to $73.5.
Gold soared to $2,150 (an all-time high) on Sunday night, then fell back by $100 to $2050, following an incident in the Red Sea involving an Israeli ship targeted by Houti rebels.
In French company news, TotalEnergies (-1.9%) announced that it had signed the investment agreement for Mirny, a $1.4 billion project involving the construction of a 1 GW onshore wind farm and 160 wind turbines.
Société Générale announced on Monday that it had launched its first digital green bond, a further illustration of the services developed by the French bank in the digital securities segment.
On the occasion of COP 28 in Dubai, Veolia reaffirmed its commitment to invest 1.6 billion euros by 2030 to move away from coal in Europe. By the end of 2023, it will have already invested 500 million euros in this respect.
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