CAC 40: limited gaps before a busy day

(CercleFinance.com) - The Paris Bourse is set to start the day moderately lower, in what promises to be a particularly busy session on Wednesday, on the economic, political, geopolitical and monetary fronts.


At around 8:15 a.m., the futures contract on the CAC 40 index - due to expire at the end of September - was down 17 points at 7252 points, pointing to limited gaps at the opening.

Investors are likely to limit their initiatives ahead of the many events expected during the session, as well as in the coming days.

The day promises to be intense on all fronts, with the publication - due shortly after the opening - of the final PMI indices for the eurozone, which had fallen into contraction in October.

These figures should confirm that the period of political uncertainty currently gripping Germany, but especially France, is worsening the outlook for service sector companies.

This afternoon in the US, investors will also be paying close attention to the ADP private employment survey, industrial orders and the ISM services index.

This last indicator will determine whether the victory of Donald Trump, who has promised tax cuts, is generating a degree of optimism among business leaders.

Against this backdrop, ECB President Christine Lagarde's speeches from Brussels, followed by Fed boss Jerome Powell's in New York, will be closely watched in order to anticipate changes in monetary policy on both sides of the Atlantic.

Investors will also be keeping an eye on the political situation in France, where Michel Barnier's government is threatened by a motion of censure that could be tabled late this afternoon.

In Asia, the stock markets were hesitant on Wednesday in the face of the confusion reigning in South Korea, where parliamentarians rejected the martial law decreed by Yoon Suk Yeol to the surprise of all, in order to deal with supposed threats from "North Korean communist forces".

While the Tokyo Stock Exchange's Nikkei index managed to stay afloat, posting a 0.1% gain at the end of the session, the CSI 300 index of mainland China's leading companies lost 0.7%.

The New York Stock Exchange ended on an uneven note on Tuesday, in a wait-and-see market three days ahead of the official US employment report, which did not prevent the Nasdaq from setting new all-time highs.

At the final bell, the technology-weighted index gained 0.4%, while the Dow Jones lost 0.2%.

We can see that the imminent arrival of a new administration in Washington is encouraging investors to take risks, which is translating into record highs in the stock market", analyzed one trader.

On the bond front, Treasuries hardly moved at all, as a wait-and-see attitude prevailed ahead of the busy calendar of the next few days, resulting in a stagnant yield of around 4.22% on 10-year bonds.

Oil prices edged up on the eve of an OPEC meeting, which is expected to refrain from making any major decisions in the current climate of uncertainty.

The January contract for US light crude gained 0.3% to nearly $70.2, while Brent North Sea crude rose 0.4% above $73.8 a barrel.

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