The Paris Stock Exchange rose 0.6% to 7,300 points, supported by gains on Wall Street. Key stocks like Renault and Dassault Systèmes saw significant increases. Economic indicators revealed a contraction in the eurozone’s private sector, with France’s PMI dropping notably. Meanwhile, the U.S. reported job growth below expectations. Global markets remained cautious amid political uncertainties in Asia, and oil prices slightly declined ahead of an OPEC meeting. Company news included Pierre & Vacances returning to profitability.
Paris Stock Exchange Holds Steady at 7,300 Points
The Paris Stock Exchange experienced a modest rise of 0.6%, maintaining its position at 7,300 points, largely fueled by a recent surge of record highs on Wall Street. The Dow Jones reached an impressive milestone of 45,000, while the S&P 500 climbed 0.3% to settle at 6,070. The Nasdaq also saw a robust increase of 0.8%, reaching 19,635, showcasing an annual growth of around 30%. Key contributors to the CAC40’s performance included Renault, which surged by 5%, Dassault Systèmes at 3.6%, and Kering with a 2% rise.
Economic Indicators and Political Landscape in Focus
The day was set to be pivotal, with significant economic statistics and political developments unfolding in France, particularly concerning a censure motion vote scheduled for the afternoon. Earlier in the day, investors received news regarding the HCOB composite PMI index for the eurozone, which saw a sharp decline from 50 in October to 48.3 in November, indicating a contraction in the eurozone’s private sector.
Specifically in France, the HCOB composite PMI index fell considerably by 2.2 points to 45.9 in November from 48.1 the previous month, marking the most substantial contraction in French private sector activity since January. Meanwhile, the U.S. reported its ADP survey on private employment along with the S&P Global Composite PMI, revealing that the U.S. private sector added 146,000 jobs in November, slightly below the anticipated 158,000.
Additionally, the growth rate for the American private sector also showed a slight slowdown, with a revised figure of 54.9, down from an initial estimate of 55.3. This composite index, still at a 31-month high, reflects ongoing expansion primarily driven by the services sector, despite continued contraction in manufacturing.
Market participants are likely to keep a close watch on the upcoming speeches from key financial leaders, including Christine Lagarde of the ECB and Jerome Powell of the Fed, to gauge future monetary policy directions. Furthermore, the political climate in France remains tense as the government faces a potential censure motion.
On the bond market front, U.S. Treasury yields showed some deterioration, hovering around 4.242% for 10-year bonds, while German Bunds and French OATs also reflected slight changes. The OAT/Bund spread tightened from 88 points to 82 points, signaling a positive shift.
In the Asian markets, stock exchanges displayed a cautious demeanor amidst political uncertainty in South Korea, where lawmakers unexpectedly rejected martial law proposed by President Yoon Suk Yeol. Oil prices experienced a slight decline ahead of an OPEC meeting, with Brent crude down 0.3% following the release of stable data from the IEA.
Furthermore, the U.S. Energy Information Administration reported a decrease in crude oil stocks to 423.4 million barrels, reflecting a drop of 5.1 million barrels from the previous week. Additionally, the agency noted an increase in stocks of distillate products and gasoline during the same period.
In company news, Pierre & Vacances-Center Parcs announced a positive net result of 29 million euros for its 2024 fiscal year, reversing over a decade of losses, while Nexans secured a significant contract with ScottishPower Renewables for the East Anglia TWO offshore wind farm project.