by Claude Chendjou

PARIS (Reuters) – The main European stock markets ended in mixed order on Wednesday and Wall Street was trending upward at mid-session with solid company publications in banking, luxury and semiconductors.

In Paris, the CAC 40 ended with a gain of 1.99% to 8,077 points, mainly supported by LVMH which boosted the European luxury sector. The British Footsie, on the other hand, fell by 0.30% due to budgetary concerns, while the German Dax fell by 0.11%, penalized by Rheinmetall and the European defense sector.

The EuroStoxx 50 index gained 0.95% and the FTSEurofirst 300 0.64%. The Stoxx 600 gained 0.57%, with virtually all of its major sectors finishing in the green, with consumer discretionary in the lead.

At the close in Europe, the Dow Jones advanced by 0.18%, the Standard & Poor’s 500 by 0.45% and the Nasdaq by 0.68% after the strong quarterly results of Bank of America and Morgan Stanley, while the semiconductor sector is supported by the financial accounts of ASML.

Corporate results also dominated trading in Europe as Stoxx 600 companies’ third-quarter profit forecasts improved in recent weeks. Analysts expect average earnings growth of 0.5%, according to LSEG IBES data, compared to a 0.6% decline seen at the start of the earnings season.

VALUES IN EUROPE

LVMH soared 12.21% after reporting increased quarterly sales and indicating signs of improvement in China. In its wake, Kering, Hermès, Moncler, Burberry, Richemont and Swatch have also moved forward.

In the European telecoms sector (+0.64%), Bouygues and Orange rose by 7.38% and 3.27% respectively after submitting an offer with Iliad for the acquisition of a large part of the activities of Altice France. Telecom Italia increased by 0.65% with the resurgence of possible consolidation of telecom operators in Italy.

TotalEnergies gained 3.70% after announcing that it was aiming for an increase in its results in the third quarter with the improvement in refining margins.

ASML rose 3.12% as the world’s largest supplier of computer chip manufacturing equipment beat market expectations for third-quarter orders and fourth-quarter forecasts.

Aurubis fell 6.48% due to the sale by Salzgitter of part of its stake in the German copper producer, which puts an end to speculation of a takeover of the group.

TODAY’S INDICATORS

Manufacturing activity in the New York region recorded a surprise increase, with an “Empire State” index at 10.7 after -8.7 in September, shows the monthly survey from the regional branch of the Federal Reserve.

Industrial production in the euro zone fell less than over a month in August, show data published Wednesday by Eurostat, the statistical office of the European Union.

CHANGES

The dollar fell 0.30% against a basket of reference currencies while Jerome Powell, the president of the American Federal Reserve (Fed), left the door open on Tuesday to further rate cuts, despite the absence of data on the American economy due to the “shutdown” which continues.

The euro advanced 0.29%, to 1.1640 dollars, notably against a backdrop of optimism about the political situation in France.

The pound sterling is trading at $1.3397, up 0.62%, as UK Finance Minister Rachel Reeves confirmed that tax hikes are being considered in the budget to be presented on November 26, while market attention remains focused on the Bank of England’s (BoE) rate trajectory.

RATE

The yield on the French ten-year OAT ended sharply lower, by 7.5 basis points, at 3.33%, while the gap with the German Bund of the same maturity narrowed to 77 points, the prospect of a dissolution of the National Assembly and early legislative elections in France seeming to recede.

The ten-year German Bund yield falls to 2.55%.

At the close in Europe, the yield on ten-year US Treasury bonds was stable at 4.02%, after fluctuating between 3.99 and 4.03% during the session, with the latest comments from US officials like Jamieson Greer and Scott Bessent casting doubt on the possibility of a trade agreement with China.

OIL

The International Energy Agency’s (IEA) forecasts of excess supply in 2026 and Sino-American trade tensions that could reduce demand for crude are weighing on oil prices.

Brent fell by 0.58% to $62.04 per barrel and American light crude (West Texas Intermediate, WTI) fell by 0.44% to $58.42 per barrel.

METALS

Spot gold rose 1.19% to $4,191.69 per ounce around 4:00 p.m. GMT, after reaching a record of $4,217.95 during the session.

The yellow metal is supported by expectations of further cuts in key rates in the United States and economic and geopolitical uncertainty.

(Written by Claude Chendjou, edited by Blandine Hénault)

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