CAC40: euphoric '3 Witches' session, +4% over the weekend

(CercleFinance.com) - What a way to end the month of January: the weekly gain flirts with +4%!

What a way to end this "3 Witches" session, with the CAC40 adding +1.
1% on the heels of its 2.1% surge, and climbing to 7720 points, driven by Stellantis (+4%) and Teleperformance (+2.5%).
The month of January ends this Friday with a record +6%... compared with zero or an insignificant gap on the US indices since December 20, 2024 ('4 witches').
Note that the DAX40 and FT100 - against a negative economic backdrop - are breaking absolute records.
Note that all speculative assets have been soaring for the past 48 hours, particularly cryptos, with BTC at $102,800 versus $90.000 at the beginning of the week

As a reminder, yesterday's gains were based on a surge in the luxury goods sector, supported by Richemont's encouraging publication, but also by the lower-than-expected US consumer price figures for December, which the previous day had reinforced expectations of further rate cuts by the Federal Reserve.
Today, the CAC40 is benefiting from the Bayrou government's non-censure, which rules out a new sequence of political turbulence.

On the 'macro' front, the Commerce Department reported a 15.8% jump in US housing starts in December 2024 compared with the previous month, to an annualized rate of 1,499,000.

U.S. building permits - which are supposed to be a precursor of future housing starts - fell by 0.7% to 1,483,000 last month. Lastly, housing completions fell by 4.8% to
This morning, investors learned the final figures for December consumer prices in the Eurozone (at 11:00 a.m.).

According to Eurostat's preliminary estimate, inflation rebounded from 2.2% to 2.4% last month, mainly due to base effects affecting energy prices, which should not worry the ECB too much.

On the earnings front, the only major publication of the day will come from US oil services group SLB (Schlumberger) at mid-day.

However, investors may be tempted to sit on the sidelines in anticipation of Donald Trump's official inauguration as the 47th President of the United States, scheduled for Monday.

Investors, who initially welcomed the New York businessman's promises to cut taxes and deregulate the economy, seem to want to wait for the new administration's first steps before really positioning themselves.

If the new president's measures are designed to further increase the power of the New World, the side-effects of higher tariffs, the mass deportation of immigrant workers and drastic cuts in public spending could put a crimp in the well-oiled machinery of the American economy", warn the teams at La Financière de l'Echiquier (LFDE).

On the government bond market, the US ten-year yield eased a further -2pts to 4.584% (or -20pts on the week), moving away from the peak reached at the beginning of the week at over 4.80%.

Its German equivalent eased -3.5pts to 2.487%, while the French OAT rate fell -5pts to 3.288%, reducing the spread between the two countries' government bonds to 80.5 basis points.

Oil, whose surge was one of the highlights of the early part of the year, remains close to its highest levels since last summer.

Brent crude is virtually stable at around $81 a barrel (-0.3%), while the euro is holding steady at around $1.029 (-0.15%).

In French company news, Renault Group announces the signature of an agreement for the creation of a joint venture between Mobilize, its brand dedicated to new mobilities, and NW, 'the French leader in electricity storage and the first French unicorn in the energy transition'

Crédit Agricole Personal Finance & Mobility, already a 50% shareholder in Sline, announces the acquisition of the entire capital of this fintech offering a rental solution for e-merchants and merchants.

Quadient announces that 'a leading US provider of integrated cloud solutions for human capital and payroll management', has selected its Quadient Inspire customer communications management (CCM) platform.


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