(News Bulletin 247) – The surge in bond yields and the heavy fall of Edenred sent the CAC 40 below 7,100 points at the end of this first session of October.
Heavy trend on the Paris Stock Exchange. Down 0.3% at midday, the CAC 40 ended this first day of October (on the stock market) down sharply by 0.94%, below 7,100 points to 7,068.16 points Monday evening.
The flagship index accelerated downward in the wake of new tensions in the bond market. The yield on 10-year US government bonds is still trending at 4.67%, at the highs of 2007. Its German counterpart, the Bund of the same maturity, is up at 2.90% compared to almost 2. 83% at the end of last week.
The CAC 40 is unable to get off on the right foot after a very difficult month of September, which ended with a decline of 2.48%, fueled by restrictive speeches from central banks and the rise in oil prices.
The vice-president of the European Central Bank (ECB), Luis de Guindos, also estimated in an interview with the Financial Times published on Monday that discussions on a rate cut were “premature”.
Investors will hear comments from Fed Chairman Jerome Powell and Philadelphia Fed President Patrick Harker during a roundtable discussion.
Previously, certain statistics were on the program for this day, including the ISM manufacturing index across the Atlantic which came out higher than expected at 49, in September after 47.6 in August and 47.9 consensus. A figure below 50 marks a contraction in activity, while a figure above 50 corresponds to an expansion in activity.
However, the markets already have their eyes fixed on Wednesday with the monthly report on job creations in the private sector for September, then the unemployment rate on Friday still in the United States.
Edenred, losing ticket this Monday
On the value side, Edenred plunged by 11% 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 3.3%.
Teleperformance dropped 2.2% as Deutsche Bank lowered its advice to “hold” from “buy” previously, raising concerns about the impact of AI on the group’s business model.
Vivendi ended up 0.7%, benefiting on the contrary from an increase to “overweight” from Barclays.
Bonduelle jumped 8.7%, driven by half-year results well received by investors.
On other markets, the euro lost 0.8% against the dollar at 1.0505 dollars. Oil prices are falling again. The December contract on North Sea Brent lost 1.3% to $91.04 per barrel, while the November contract on WTI listed in New York lost 1.6% to $89.30 per barrel.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.