by Claude Chendjou

PARIS (Reuters) – European stock markets ended slightly higher on Tuesday in a cheap buying movement, while Wall Street was on slight variations mid-session after recent records for the S&P 500 and the Nasdaq.

In Paris, the CAC 40 ended with a gain of 0.26% to 7,255.42 points with an increase in luxury values ​​and stability in the bond compartment, the probable censorship of Michel Barnier’s government being, according to analysts, now integrated by the markets.

The German Dax, driven by the technology, finance and industry sectors, crossed the symbolic bar of 20,000 points during the session for the first time in its history, before closing up 0.51%. The British Footsie gained 0.56%, driven by energy stocks in the wake of the rise in oil prices.

The EuroStoxx 50 index increased by 0.66%, the FTSEurofirst 300 by 0.48% and Stoxx 600 by 0.37%.

Market sentiment in Europe was driven mainly by opportunity buying in new technologies (+1.02%), basic resources (+0.74%) and automobiles (+0.16%) .

At the close in Europe, the Dow Jones fell by 0.34% and the Standard & Poor’s 500 by 0.15%. The Nasdaq advances by 0.04%, after once again reaching an unprecedented peak during the session, at 19,456.31 points.

A sign of a relaxation on risky assets, the American Vix index measuring volatility fell to around 13 points, while its European equivalent lost 2.54% to 16.74 points.

The indices vary little on Wall Street while investors are awaiting indicators on the trajectory of key rates from the Federal Reserve, several members of the institution due to speak this Tuesday, while the official report on the employment and wages is to be published on Friday.

VALUES IN EUROPE

Worldline fell 10.49% as the American private equity fund Bain Capital indicated that it was not interested in a buyout of the group.

Forvia plunged 4.84%. The automotive supplier announced on Tuesday the appointment of Martin Fischer as CEO, effective March 1, 2025.

Stellantis rebounded by 1.60% the day after a fall of 6.3% following the departure of its CEO. A source told Reuters that the automaker has two internal candidates to succeed Carlos Tavares.

Mercedes-Benz fell 2.53% as Barclays lowered its rating on the German automaker from “inline weight” to “underweight.”

TODAY’S INDICATORS

The number of job offers in the United States (Jolts survey) increased in October beyond expectations, to 7.744 million compared to 7.372 million in September, data from the US Department of Labor show.

CHANGES

The euro rebounded on Tuesday, by 0.12% to 1.0510 dollars, regaining a little stability after fears linked to political turbulence in France.

The US dollar lost 0.08%, to 106.28 points, against a basket of reference currencies.

RATE

Long-term US Treasury yields rise on Tuesday in response to the Jolts survey: the US ten-year rises 1.5 basis points (bps), to 4.209%.

In Europe, the spread between the German Bund and the French ten-year OAT narrowed slightly, to less than 85 bp, compared to 90 bp on Monday, its highest level since 2012.

The yield of the German ten ended at 2.057% and its French equivalent at 2.901% while French Prime Minister Michel Barnier, who is due to speak on the 8:00 p.m. television news on TF1 and France 2, warned that censorship would not would only make France’s situation worse, particularly budgetary.

OIL

The oil market is rising ahead of Thursday’s OPEC+ meeting, which sources say is expected to extend its latest round of production cuts until the end of the first quarter.

Brent rose 2.55% to $73.65 per barrel and American light crude (West Texas Intermediate, WTI) rose 2.85% to $70.04.

(Written by Claude Chendjou, edited by Zhifan Liu)

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