Paris stock exchange has gained 0.6%, adding to a previous 2.2% rise, totaling a 2.8% increase over two days. The CAC40 index is close to 7,500 points, spurred by strong performances from URW, Schneider, and Sanofi. Eurozone inflation is projected to rise slightly, while unemployment remains stable. In the U.S., the trade deficit widened, but the services sector showed unexpected growth. Commodities like Brent crude are rising, and corporate news includes Spie’s new director and EDF’s bond issuance.
Paris Stock Exchange Sees Positive Momentum
The Paris stock exchange has experienced a notable rise, gaining 0.6% after a 2.2% jump the previous day, bringing its total increase to 2.8% over two sessions. This marks one of the strongest bullish trends since mid-September, with the annual performance reaching an unexpected +1.5% amid economic challenges and political uncertainties.
With the CAC40 index surpassing the 7,480 resistance level and nearing 7,500 points, key contributors to this surge include URW, which rose by 2%, along with Schneider and Sanofi, up by 1.5%. However, there will be no influence from Wall Street on this day, as it remains closed in observance of a day honoring former President Jimmy Carter, who recently passed away at the age of 100. The market’s sentiment was largely shaped by the release of the eurozone’s annual inflation rate, which is projected to be 2.4% for December 2024, a slight increase from 2.2% in November, according to Eurostat.
Economic Indicators and Global Impacts
Examining the primary components of inflation in the eurozone, services are anticipated to see the highest annual rate at 4.0%, up from 3.9% in November. Other sectors include food, alcohol, and tobacco at 2.7%, industrial goods excluding energy at 0.5%, and energy at a mere 0.1%, a significant drop from November’s -2.0%.
In terms of employment, the eurozone’s seasonally adjusted unemployment rate stood at 6.3% in November 2024, unchanged from October but down from 6.5% in November 2023. The EU’s unemployment rate also held steady at 5.9%. Meanwhile, across the Atlantic, the U.S. trade deficit widened to $78.2 billion in November, reflecting a 6.2% month-on-month increase due to rising imports, which saw a 3.4% uptick, outpacing a 2.7% growth in exports according to the Department of Commerce.
Furthermore, the U.S. services sector showed unexpected growth, with the Institute for Supply Management’s (ISM) services index increasing to 54.1, exceeding economists’ predictions of 53.5. This marks the 52nd month of growth since the recovery began following the COVID-19 pandemic.
As a consequence of these developments, the Euro dipped against the U.S. Dollar, trading at approximately $1.0370. On the bond market, after a strong performance the previous session, French OATs and Bunds experienced slight declines, while British Gilts faced significant challenges, with yields hitting their highest in 25 years.
In commodity markets, Brent crude oil prices have seen a rise, now hovering around $77 per barrel.
In corporate news, Spie has announced the appointment of Evert Lemmen as the new general director of Spie Nederland, effective February 1, 2025. Meanwhile, EDF has successfully issued multi-tranche senior bonds totaling $1.9 billion, aimed at financing its strategies and contributing towards achieving carbon neutrality by 2050.