CAC40 faced a 0.5% decline amid market uncertainty, influenced by notable drops from STMicro, Schneider Electric, and Thales. U.S. markets also struggled, with the Dow down 0.4% as investors await election results. Geopolitical tensions in the Middle East and crucial monetary policy decisions from the Bank of England and Federal Reserve loom large. Economic indicators show mixed results, while corporate developments include leadership changes at Schneider Electric and significant agreements involving TotalEnergies and Engie.
CAC40 Experiences Decline Amidst Market Uncertainty
The CAC40 index, after an optimistic start, faced a downturn in the latter half of the trading session, closing down by 0.5% at 7371 points. Key contributors to this decline included STMicro, which fell by 3%, Schneider Electric, down 2.3%, and Thales, which decreased by 2%.
Global Market Overview and Economic Indicators
Across the Atlantic, the mood remains somber as the Dow Jones dipped by 0.4%. Meanwhile, the S&P 500 remained relatively stable, and the Nasdaq saw a minimal increase of 0.1%. Investors are currently cautious as they await the outcomes of the upcoming American elections, with uncertainty looming over who will take residence in the White House. Concerns about potential unrest from Trump supporters protesting the results add to the tension.
Geopolitical issues are also prominent, particularly in the Middle East, where Israel’s military actions in southern Lebanon have escalated, prompting discussions of possible retaliation from Tehran.
This week is crucial for monetary policy as both the Bank of England and the Federal Reserve are set to announce their decisions on Thursday, with speculation around a 25 basis point rate cut from the Fed.
In terms of economic statistics, the HCOB PMI index for the eurozone’s manufacturing sector showed a slight improvement, rising from 45 in September to 46 in October, indicating a slower pace of contraction—the most gradual since May. However, with the index still below the 50 threshold, it marks the 28th consecutive month of economic decline, the longest observed since the survey began in 1997.
In the U.S., industrial orders saw a decline of 0.5% in September, following an earlier drop of 0.8% in August. Similarly, industrial shipments fell by 0.4%, while the inventory-to-shipment ratio held steady at 1.46, with inventories decreasing by 0.2%.
In France, the HCOB PMI index for the manufacturing sector reported a score of 44.5 in October, showing stability compared to September but continuing to reflect significant economic challenges.
On the bond market front, the yield on 10-year U.S. Treasury bonds decreased by 8.5 basis points to 4.278%. In Europe, German Bunds and French OATs also saw declines in yield, coming in at 2.38% and 3.125%, respectively.
In commodities, Brent crude oil prices climbed by nearly 2.3% to $74.6 per barrel, while the euro strengthened by 0.5% against the U.S. dollar, trading at $1.088.
In corporate news, Schneider Electric’s board appointed Olivier Blum as the new CEO, replacing Peter Herweck amid strategic disagreements. TotalEnergies announced a significant sales agreement with Sinopec for the delivery of 2 million tons of LNG annually over 15 years starting in 2028. Engie secured a project for a 100 MW Battery Energy Storage System from Belgium’s electric network manager, Elia, while Airbus Helicopters inked a landmark contract with SkyAlyne to provide the Canadian Armed Forces with 19 H135 helicopters.