CHARLENE YVES
The CAC 40 had caught fire at the opening with Donald Trump’s victory in the US presidential election. After assessing all the indicators coming out of the United States, the Paris Bourse ended up taking the opposite path, with a decline that took it into the red.
Market trend
The session seemed surprisingly positive for the CAC 40 on Wednesday. While observers were predicting an extremely close election, Donald Trump’s victory was quite clear-cut. By the opening bell, the outcome was no longer in doubt, and the Paris Bourse was swept along by optimism. The Paris stock market’s flagship index experienced a technical easing that enabled it to soar above 2%. Gradually, however, the euphoria died down, and the realization was rude.
By 3pm, the European stock markets had completed their reassessment of the former president, who brings with him the threat of tariffs and a return of inflation. As a result, the CAC 40 ended the day below equilibrium, down sharply. Wall Street, meanwhile, was buoyed by the election results. New York’s stock market momentum could continue with tomorrow’s decision by the US Federal Reserve (Fed).
Indexes in France and around the world
| CAC 40 | – 0,51% | 7,369.61 points |
| SBF 120 | – 0,55% | 5,588.20 points |
| DAX | – 1,13% | 19,036.99 points |
| FTSE 100 | – 0,07% | 8,160.53 points |
| Nikkei | + 3,75% | 39,480.67 points |
| Dow Jones* | + 3,12% | 43,539.38 points |
| Nasdaq* | + 2,27% | 18,858.15 points |
| *index closed at the close of European stock markets | ||
Fact of the day
The major event of the day was, of course, the election of Donald Trump. Already anticipated by the markets for several weeks, the former president’s return to the White House inevitably upset American and global indicators. In particular, US Treasuries soared to 4.46% by the close of European trading.
The dollar was the other indicator to see its value soar. The greenback gained more than 2% against the euro. The 78-year-old real estate tycoon’s victory also helped bitcoin reach a new record high of over $75,371. All these indicators were reflected on the French stock market. Read on for analysts’ views on the impact of the Republican candidate’s election on the Paris Bourse.
Stocks in view
The Top
Thales had a good trading session, gaining 2.87% and outperforming the CAC 40. On Wednesday, the world leader in high technology announced a partnership with FEBUS Optics, a technology company specializing in fiber optic sensor systems. This partnership should enable the development of innovative solutions for the protection of critical underwater infrastructures.
In its press release, the group expands on its ambitions: “In a market driven by the geopolitical climate, securing submarine cables, such as telecom cables, power cables and pipelines, is a major challenge.” FEBUS Optics is expected to collect the acoustic data, enabling the French group to exploit its elements and design the sonar antennas. Last week, Australia announced that it was joining forces with Thalès to produce long-range guided missiles and artillery ammunition.
The Flop
The Crédit Agricole can’t blame the US election for today’s fall. Because of its quarterly resultsthe banking group stumbled by 3.77%, the biggest drop on the CAC 40. On Wednesday, the company reported a 12.8% drop in third-quarter net income to 2.08 billion euros. Even so, Crédit Agricole fared slightly worse than its rival BNP Paribas, but was still ahead of Société Générale. The French bank was penalized in particular by its retail banking activities.
It was particularly hard hit in France by the rise in business failures, which resulted in unpaid loans. Comparative basis effects are also unfavorable compared with last year. The equivalent of sales, net banking income, managed to stabilize at -0.4%. Philippe Brassac, Chief Executive Officer, welcomed this result with the following comments “very solid, very steady performance”.. The company highlights its attractiveness, with over 100,000 new customers between July and September.
Number of the day
6,1%
According to the Finance Bill presented this Wednesday to the Council of Ministers, France’s public deficit will reach 6.1% of GDP. This figure is much higher than the 4.4% initially expected.
Thursday November 7 agenda
Thursday’s trading session will again be dominated by US news. After the election of Donald Trump, it will be the US Federal Reserve’s turn to monopolize attention. The Fed is expected to announce a 25 basis point cut in its key rates. Quarterly results, a new salvo of publications is expected in France including figures from Air France-KLM, ArcelorMittal and Engie. In other news, the Bank of England is also expected to unveil its monetary policy forecasts, while China will publish its trade figures for October.
Editorial recommendations
Bouygues reassured investors with the publication of its quarterly results on Tuesday. The conglomerate not only reported higher sales, but also confirmed its annual forecasts. The share price remains low, however, despite its attractive outlook. Find out more about our advice on Bouygues shares.
AB InBev continues to improve its financial results, even though its volumes have been falling since the second quarter of 2023. The brewing giant, whose brands include Corona and Jupiler, is managing to move upmarket for the time being. Find out more about AB InBev.