Market trends

The markets gave in completely to pessimism this session. At the opening, the Paris Bourse plunged straight into the red, erasing much of the previous day’s gains. Rumors about the personalities who will make up Donald Trump’s next cabinet gave credibility to the generalization of tariffs. As a result, worries about Trump’s protectionist policy towards the Old Continent soared on the European stock markets.

In Paris, the downturn in luxury goods and other large-cap stocks (Schneider Electric, Legrand, etc.) prevented any recovery. The opening of the American markets thus contributed to a further fall in the CAC 40, which settled at around 2.80% before closing down 2.69%. A three-month low.

Indexes in France and around the world

Fact of the day

The European stock markets have yet to take a position on the election of Donald Trump. Since the confirmation of his return to the White House on November 6, markets have oscillated between optimism of positive momentum for business and fear of tariffs. During this session, investors tilted towards concern. Rumours of the probable arrival of particularly hostile figures in Beijing only served to reinforce this pessimism.

US media mention Marco Rubio’s nameFlorida senator and advocate of an aggressive policy towards China, to succeed Anthony Blinken as diplomat. For the post of national security advisor, Mike Waltz, also elected in Florida, considers the world’s second-largest economy to be a “major threat”. “great threat”.

The threat of increased customs duties is a real possibility for China, but also for Europe. European companies are therefore preparing for a 10% impact on their products imported into the United States. Torn between companies dependent on the American market and those dependent on the Chinese market, the CAC 40 would be particularly penalized by a return to high tensions between the two powers.

Stocks in the spotlight

The Top

STMicroelectronics is the only CAC 40 stock to be in the green today. The semiconductor manufacturer is up 1.03%. The Franco-Italian group benefited from better-than-expected third-quarter results from its German counterpart Infineon Technologies.

With a rise of over 3% on the Frankfurt Stock Exchange, the company nonetheless announced that a drop in sales for the year 2024/2025 is expected. In its press release, the German group claims to be optimistic about a gradual recovery in business in the course of 2025. Indeed, the company expects a return to growth in the automotive sector, which accounts for 50% of its business.

Even so, STMicroelectronics is still going through a tricky period, as demand for industrial and automotive chips is at a low ebb. The company, which has already issued three warnings since the start of the year, is expecting a sharp drop in sales for the next six months. The Franco-Italian company has decided to devote the day of November 20 to its investors.

The Flop

Kering was the CAC 40’s biggest decliner, down 5.76%, dragging down the other luxury stocks. LVMH is down 4.52%, Hermès is down 3.42%, L’Oréal is down 2.37% and Christian Dior is down 4.88%. In a session devoid of any major macroeconomic events, the French group took the full brunt of the markets’ fears over increased tariffs in the United States. Donald Trump is threatening to impose an across-the-board 10% tax on all products entering the US. Bad news for the European economy, but even worse for the luxury goods sector, which could see its sales volumes fall even further.

The luxury goods sector is also having to digest China’s false hope of new measures to boost its economy. Beijing announces higher debt ceiling for local authoritiesbut the markets are still waiting for the big maneuvers that will put the world’s second-largest economy back on the right track. Dependent on the Chinese economy, the luxury goods sector is suffering from sluggish demand in the country. Kering is also the most troubled share due to the weakening of Gucci, its flagship brand, which has been unable to relaunch itself. Since the beginning of the year, the stock has lost over 47% of its value.

Quote of the day

“Just think of the recent floods in Spain, the droughts in the Amazon basin or the storms in North America. These events are horrific in themselves, but they are also ruining the foundations of our economies and, ultimately, the basis of our economic survival.”

In an article published on the website of the European Central Bank (ECB) and in the Financial Times, Christine Lagarde, President of the ECB, warns of the growing gap between the commitments made and the investments needed as COP 29 attempts to reach an agreement.

Wednesday November 13 agenda

Wednesday’s session is unlikely to be the most turbulent on paper. Investors will have some company results to dissect whether it’s Eiffage’s third quarter or Alstom’s first half 2024/2025. On the macroeconomic statistics front, Germany’s Committee of Economic Wise Men is expected to present its updated forecasts for 2025. In the United States, markets will be awaiting the CPI for October.

Editorial recommendations

ID Logistics is enjoying impressive growth, with an increase of around 20% in the third quarter. The French contract logistics group is maintaining its momentum thanks to its business in Europe, but above all in the United States. Find out more about the ID Logistics share.

Schlumberger maintains upward momentum on the stock market thanks to good international results. The French parapetroleum services giant saw its third-quarter sales rise by 10% despite the drop in oil barrel prices. Find out more about Schlumberger.

Sodexo has published financial statements in line with its objectives and market expectations for fiscal 2023/2024. The foodservices group has reassured the market of its external growth intentions. Find out more about Sodexo’s share price advice.