CAC40: quiet session, ends slightly higher
This morning, investors learned of a further contraction in private-sector activity throughout the eurozone in November, for the sixth month in a row, reinforcing a potential recession scenario.
The preliminary composite PMI index measuring overall activity in the eurozone, published by HCOB, did rise to 47.1, from 46.5 in October, but remains below the 50 threshold that marks the boundary between expansion and contraction in activity.
The Hamburg Commercial Bank also indicated that these data point to a second consecutive quarter of contraction in eurozone GDP, synonymous with a technical recession in the region.
In France, private-sector activity continued to contract in November, penalized by persistent weakness in demand. The PMI 'flash' composite index measuring overall activity compiled by HCOB fell to 44.5 in November, compared with 44.6 in October, falling into negative territory for the sixth month in a row.
On the other hand, the PMI measuring British private sector activity returned to the expansion zone in November, according to data published on Thursday, thanks to a buoyant services sector.
The 'flash' composite index published by S&P Global and CIPS, which tracks overall activity in the country, came in at 50.1 this month, compared with 48.7 points in October.
The markets are also affected by fears of instability in the eurozone following the victory of Geert Wilder's populist, anti-EU PVV party in yesterday's parliamentary elections in the Netherlands (the leader, classified as "very right-wing", does not in fact have a majority, and will have to build a coalition that will not allow him to "roll out his program").
On the currency markets, the greenback is broadly stable against the euro, at $1.09/euro. Meanwhile, the price of Brent crude continues to fall, down -1% to $80.8 a barrel.
On the bond market, the yield on 10-year US Treasuries is stuck at around 4.45% (no quotes today), and the yield on the German Bund for the same maturity, which has fallen 21 points over the past month, is back up to 2.61%, while our OATs are down to 3.18%).
In French company news, Stellantis and Dongfeng Motor confirm that they have reached an agreement for Stellantis to buy back 50 million ordinary shares (1.58% of Stellantis' share capital before cancellation) from Dongfeng, for a total of 934 million euros. Stellantis plans to cancel these shares.
Eviden, the Atos group's digital, big data, cloud and security business line, partners with Microsoft to help customers in various sectors migrate to the cloud, and facilitate their use of the Azure OpenAI service.
Alstom, Transdev and the Southern Region unveil the first Omneo trainset to operate the first regional rail line open to competition, between Marseille, Toulon and Nice.
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