Paris Stock Exchange experienced a modest increase of 0.03% after an initial rise of over 1%. The CAC40 index was influenced by a rebound in luxury stocks but faced pressure from a significant drop in Thales shares amid a bribery investigation. Meanwhile, global markets showed positive trends, with the S&P 500 and other indices rising. The euro strengthened against the dollar, while economic indicators in Germany raised concerns. TotalEnergies announced new projects, and Atos received an acquisition offer from the French government.
Paris Stock Exchange Experiences Mixed Performance
Following an impressive opening where the Paris Stock Exchange surged over 1%, the momentum fizzled out as the day progressed. By the end of the trading session, the Paris index managed to secure a slight increase of 0.03%, closing at 7257 points.
The CAC40 index faced contrasting influences, buoyed by a rebound in luxury stocks—Kering climbed by 5.2%, and Hermès increased by 2.7%—yet weighed down by a significant drop in Thales shares, which plummeted 5.1% due to an ongoing bribery investigation conducted by the Serious Fraud Office (SFO) in the UK.
Global Market Trends and Economic Indicators
Across the Atlantic, the S&P 500 rose by 0.4%, with the Nasdaq and Dow Jones following suit, gaining 0.6% and 0.8%, respectively. In the bond market, US rates experienced a notable drop, decreasing by 11.5 points to 4.3%. Meanwhile, European rates showed a more modest decline, with Bunds down by 5 points to 2.2040% and OATs dropping 3.8 points to 3.015%.
The euro appreciated by 0.7%, climbing to $1.048 after dipping to $1.034 on Friday, aided by favorable remuneration differentials against the dollar. Market participants are keeping a close watch on developments surrounding the ongoing tensions in Ukraine, while also focusing on the forthcoming inflation data for November in the eurozone, expected to approach the European Central Bank’s (ECB) target of 2%.
Strategist Alexandre Hezez from the Richelieu group suggests that the ECB may need to adopt a more accommodating policy in response to cyclical inflation challenges that could normalize inflation rates. If rate cuts exceed expectations, it may weaken the euro further, which recently hit a two-year low against the dollar, potentially benefiting European export-oriented companies.
Moreover, the Ifo business climate index in Germany has declined, highlighting the challenges faced by Europe’s largest economy. After a rebound in October, the index fell again to 85.7 from 86.5 the previous month, falling short of economists’ expectations of around 86.
In terms of corporate news, TotalEnergies announced the initiation of a renewable hydrogen production project in collaboration with Air Liquide at its La Mède facility in Bouches-du-Rhône. Additionally, TotalEnergies is aware of the indictment of certain executives from the Adani group concerning alleged corruption linked to Adani Green Energy Limited (AGEL). Notably, this indictment does not implicate AGEL or its affiliated companies.
TotalEnergies stated, “We are not targeted or involved in the described allegations and will take all necessary actions to safeguard our interests as a minority shareholder (19.75%) in AGEL and a partner (50%) in joint ventures with AGEL.”
Lastly, Atos has received a non-binding offer from the French government for the potential acquisition of 100% of the Advanced Computing operations within its BDS division, valued at €500 million, which may rise to €625 million with additional price supplements.