GpRiccardi / gpriccardi – stock.adobe.com
With no major announcements, the Paris Bourse had a cautious session on Monday. Mainly influenced by the US, the stock market is cautiously awaiting the presidential election, which promises to be indecisive, and the Fed meeting.
Market trends
The Paris Bourse failed to build on Friday’s gains to generate fresh momentum. This Monday, the Paris market had nevertheless managed to quickly move into the green.although investors remained cautious.
EssilorLuxottica, one of the CAC 40’s leading capitalizations, managed to keep the flagship index above equilibrium for a long time. News from the United States ended up sending the CAC 40 down due to the heaviness of Wall Street. Just hours before the US election, a poll released over the weekend weighed heavily on bond yields and the dollar. Investors were anticipating a Donald Trump victory, but the election is shaping up to be extremely close.
A Kamala Harris victory would not have the same consequences, or at least in the same proportions, for the indicators. With this event paralyzing all the world’s stock markets, the Paris stock market is no exception to this wait-and-see attitude.
Indexes in France and around the world
| CAC 40 | – 0,50% | 7,371.71 points |
| SBF 120 | – 0,48% | 5,592.94 points |
| DAX | – 0,56% | 19,167.81 points |
| FTSE 100 | + 0,09% | 8,198.79 points |
| Nikkei | – 2,63% | 38,053.67 points |
| Dow Jones* | – 0,29% | 41,928.49 points |
| Nasdaq* | + 0,35% | 18,304.15 points |
| *index closed at the close of European stock markets | ||
Fact of the day
All it took was one poll to tip the session. With the markets predicting a Donald Trump victory, the daily Des Moines Register unveiled a poll showing Kamala Harris back in the lead in Iowa. A state that was largely won by the former president in the 2016 and 2020 elections. This information makes the election even more indecisive and, above all, unpredictable. In recent weeks, bond yields had soared with the slight ascendancy taken by the Republican candidate. At the close of Friday’s trading session, ten-year Treasury bonds were at 4.38%, compared with 4.30% at the close of trading on European stock exchanges on Monday. Investors were betting on Donald Trump’s return to the White House. His agenda includes lowering immigration and raising tariffs. These proposals could widen the deficit and send yields soaring.
In the event of Kamala Harris taking over the presidency, bond yields would rise again, but by much less. All these developments concerning the US election tend to put the brakes on the markets just before the outcome.
Stocks in focus
The Top
EssilorLuxottica continued to soar, gaining 3.04% to 223.60 euros. The Franco-Italian group thus posted the biggest gain on the CAC 40 this session. According to BFM Businessthe eyewear manufacturer is set to accept a multi-billion euro investment from Meta, Facebook’s parent company. “Meta to invest in 4 or 5% of capitalconfirmed a source close to management to BFM Business. Zuckerberg wants to consolidate his partnership and capture some of the value it will create.”
Last September, the optical giant had already signed a ten-year partnership with Mark Zuckerberg’s company to design connected glasses. The Ray-Ban Meta, born of this collaboration, has been a great success, topping the sales charts in 60% of the group’s stores in Europe. A heavyweight on the Paris flagship index, EssilorLuxottica is a rising star, having passed the symbolic 100 billion euro mark in market capitalization last week. Its positive outlook is attracting the interest of the American tech giant.
The Flop
STMicroelectronics is suffering the effects of disappointing quarterly results, with a further fall on the stock market. The chipmaker, which once again lowered its annual targets, is down 2.98%, the biggest drop on the CAC 40. The Franco-Italian group was downgraded by several brokers on Monday. Morgan Stanley decided to downgrade its opinion from “in-line weighting”. à “underweight (which corresponds to sell in its recommendation system). The research department is now targeting a share price of €20, compared with €35 previously.
Oddo BHF made a similar decision, downgrading its recommendation from from “outperform”. à “neutral”, with a price target lowered from €36 to €28. Analysts were cautious about the less than reassuring outlook for the beginning of 2025.
Quote of the day
“We’re not in an escalating trade war and so we need to get back into negotiations. […] Our manufacturers and farmers have been working with China for a very long time. We want these bilateral relations to continue to exist and to continue to grow”.
Sophie Primas, the French Minister for Foreign Trade, reiterated on Monday that negotiations on potential customs surcharges against cognac are possible with Beijing. After a meeting in Shanghai with Wang Wentao, her Chinese counterpart, the Minister called for discussions at a time when tensions between China and the European Union are growing over electric vehicles and cognac.
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China shakes up the cognac industry in Charente and on the stock markets, “cognac values” suffer
Tuesday November 5th agenda
Tuesday will be marked by the vote of US citizens in the presidential election. Investors will also be keeping an eye on the ISM services index for October. On our side of the Atlantic, a number of quarterly results will be on the agenda, including Bouygues and Rubis. Overseas, figures from Ferrari, Hugo Boss and Nintendo will be on the agenda. A meeting between European Union finance ministers is also scheduled for tomorrow.
Editorial recommendation
Sopra Steria Sopra Steria, a digital services company (ESN), reported satisfactory quarterly results and confirmed its forecasts for the year. The share price inevitably benefited from this on the stock market, while its competitor Capgemini’s figures were disappointing. Find out more about our advice on Sopra Steria.