Paris Stock Exchange saw a modest gain of 0.37%, closing at 7330 points, driven by strong performances from Accor, Société Générale, and Stellantis. Despite political tensions from a censure motion targeting the Barnier government, the market showed resilience. Meanwhile, the euro strengthened against the dollar, and U.S. trade deficits improved. In corporate news, Safran’s stock fell after revenue growth projections, while Spie acquired Corporate Software, and Unibail-Rodamco-Westfield increased its stake in URW Germany GmbH.
Paris Stock Exchange Closes Up Amid Political Turbulence
The Paris Stock Exchange concluded the trading session with a modest increase of 0.37%, finishing at 7330 points. This positive movement was primarily fueled by notable gains from key players such as Accor, which rose by 4.7%, Société Générale with a 4.3% increase, and Stellantis, up by 3.7%.
Interestingly, the recent adoption of a censure motion aimed at toppling the Barnier government has been viewed as a classic ‘non-event.’ Despite this political upheaval ushering in a phase of uncertainty, analysts are observing that the Paris index is demonstrating resilience against such turbulence.
Market Reactions and Economic Indicators
The fact that traders remain unfazed by the censure is evident, as the euro has appreciated over 0.5% against the dollar, now trading around 1.057 USD/EUR. Meanwhile, across the Atlantic, market movements appear subdued, with the Nasdaq inching up by 0.1%, while the S&P 500 remains steady and the Dow Jones experiences a slight decline of 0.2%.
On the economic front, the U.S. trade deficit saw a significant reduction, dropping to $73.8 billion in October from $83.8 billion in September, according to the Department of Commerce. This 11.9% decrease resulted from a 4% decline in U.S. imports, which totaled $339.6 billion, outpacing a 1.6% drop in exports to $265.7 billion.
As we approach the upcoming Non-Farm Payroll (NFP) publication, the Department of Labor has reported 224,000 new unemployment claims in the U.S. for last week, marking an increase of 9,000 compared to the preceding week. In the bond market, the yield on 10-year U.S. Treasury bonds rose by 2.5 basis points to 4.2060%, while French OATs decreased to 2.878/2.882% (-1.5 basis points in 24 hours), and the German Bund increased to 2.108% (+5 basis points), resulting in a rate spread between Germany and France dropping below 80 basis points.
Christopher Dembik reassures that “we are far from a financial crisis scenario.” Additionally, a strong appetite for high-potential assets is evident, as bitcoin has crossed the significant milestone of $100,000 for the first time, reaching a peak of $104,000. This surge is largely attributed to optimism surrounding potential deregulation in the cryptocurrency market with the anticipated return of Trump to the White House.
In France, the manufacturing sector reported stable production levels in October compared to the previous month, following a 0.7% increase in September. Overall industrial production remained nearly unchanged at 0.1%, after an 0.8% rise.
In contrast, Germany experienced a 1.5% decline in new manufacturing orders in October 2024 compared to September, following a substantial 7.2% increase the previous month.
In corporate news from France, Safran’s stock dipped by 7.3% after the company announced expectations of approximately 10% revenue growth for 2025, alongside projected operating profits between 4.7 and 4.8 billion euros, and free cash flow estimates ranging from 2.8 to 3 billion euros.
Spie has announced the acquisition of 100% of Corporate Software, a prominent Swiss IT services and consulting firm established in 2011. Lastly, Unibail-Rodamco-Westfield (URW) has revealed the acquisition of a 38.9% stake in URW Germany GmbH and its affiliated entities from its joint venture partner, the Canada Pension Plan Investment Board (CPP Investments).