(News Bulletin 247) – The Parisian index ended sharply higher after a member of the central bank judged that a further increase in rates had little chance of being implemented and while job openings fell to UNITED STATES. The Dax set a session record.
The Paris Stock Exchange is finishing a good session which gained momentum during the second part of the day, this Tuesday. The CAC 40 gained 0.74% to 7,386.99 points and is now close to 7,400 points. In Frankfurt the Dax 40 reached a historic high during the session at 16,551.34 points as well as at the close (16,533.11 points).
Two elements may have animated the market during the day. The member of the board of the European Central Bank (ECB), Isabel Schnabel, although judged as a hawk (an intransigent central banker in the fight against inflation to summarize), declared to Reuters that with the fall in inflation a further increase in the central bank’s key rates was now “rather unlikely”.
This accelerated a movement of easing of bond yields in the euro zone. The 10-year German sovereign bond rate thus fell by 11 basis points (0.11%) to 2.243%.
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Job openings in the United States fall
Another “positive” element (from the point of view of the markets): job openings in the United States fell in October to their lowest since March 2021, according to data published at 4 p.m. by the American Bureau of Statistics. Job openings thus increased to 8.7 million units, compared to a consensus compiled by the Wall Street Journal at 9.4 million units.
Enough to give food for thought to a market which, in recent weeks, has begun to speculate no longer on the end of the key rate increases of the American Federal Reserve (Fed), but on the number of reductions which would be implemented. in 2024. By December 2024, investors attribute a probability of more than 50% to reductions in key rates of 125 basis points (1.25%) cumulatively, which represents five increases of 25 points of base.
On stocks, the differences were frankly contained: BNP Paribas gained 2.2% while Alstom fell by 1.9%.
On the smaller capitalization side, Carmat gained 32.2% after announcing the commissioning of a second production building for its Aeson artificial heart.
The maritime transport and aeronautical engineering specialist Clasquin jumped 40.8%. The controlling shareholders of the company, with 42% of the capital, have entered into exclusive negotiations with Shipping Agencies Services (SAS), a subsidiary of the maritime carrier MSC to sell their shares, all on the basis of an enterprise value of 325 million euros. SAS intends to file a public purchase offer (OPA) on the balance of the shares, once this block has been purchased.
At the very end of the session, Casino jumped and finished up more than 34%, with no apparent explanation at first glance. The low par value of the title now (0.75 euros) invites us to put this brutal movement into perspective somewhat.
On other markets, the euro fell 0.25% against the dollar, to 1.0809 dollars. Oil contracts are sluggish. The February contract on North Sea Brent gained 0.3% to $78.23 per barrel, while the January contract on WTI listed in New York advanced 0.4% to $73.31 per barrel.
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