(News Bulletin 247) – The Parisian index dropped 0.3% mid-session, weighed down in particular by the heavy fall of Edenred. The meal voucher group is penalized by the hypothesis of a reduction in commissions envisaged by the government.
Avoiding “shutodwn” is not enough. The Paris Stock Exchange fell this Monday at the start of the week, with the CAC 40 falling 0.32% to 7112.22 points.
The United States has managed to avoid a “shutdown”, that is to say a closure of American federal services for lack of funding. An extremis agreement between Democrats and Republicans made it possible to avoid such an outcome, even though it only postponed the deadline by 45 days.
“On a practical level, the Congressional agreement, as fragile as it may be, prevents us from being deprived of statistics coming from the Departments of Commerce and Labor, which would have put the Fed and the markets in the fog,” note the economists from Oddo BHF.
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Edenred, losing ticket this Monday
American employment is indeed the big meeting of the week for the markets and it would have been a shame to be deprived of it by the shutdown.
Bond rates are also rising somewhat, the yield on the 10-year German Bund stands at 2.869%, compared to 2.845% on Friday.
The vice-president of the European Central Bank (ECB), Luis de Guindos, estimated in an interview with Financial Times published Monday, that discussions about a rate cut were “premature”.
On the value side, Edenred plunged by 7.4% while the Minister for Tourism, Commerce and SMEs, Olivia Grégoire, raised the possibility of introducing a cap on the commissions of groups issuing restaurant vouchers. Sodexo, whose meal voucher activity is proportionately lower than Edenred, lost 3.6%.
Teleperformance drops 1.7% as Deutsche Bank lowered its advice to “hold” from “buy” previously, expressing concern about the impact of AI on the group’s business model.
Vivendi gained 1.9%, benefiting on the contrary from an increase to “overweight” from Barclays.
Bonduelle rose 6.3%, driven by half-year results well received by investors.
On other markets, the euro lost 0.3% against the dollar at 1.0541 dollars. Oil prices are increasing. The December contract on North Sea Brent advanced 0.9% to $93 per barrel, while that of November on WTI listed in New York gained 0.8% to $91.49 per barrel.
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