Paris Stock Exchange saw a shift from initial declines to a +0.6% gain, stabilizing near 7,500 points amid a public holiday. Teleperformance and Bureau Veritas led gains, while the automotive sector faced declines. Economic concerns heightened with Trump’s potential trade policies, and the euro dropped below $1.03000. German industrial production rebounded, and U.S. bond yields stabilized. Oil prices rose, and Airbus secured a significant order from Starlux Airlines, while Sanofi’s drug met key study benchmarks.
Paris Stock Exchange Sees Positive Movement Amid Public Holiday
The Paris Stock Exchange experienced an intriguing day as it shifted from initial declines to positive gains around 10 AM. The market continued to rise steadily, showing no signs of resistance until approximately 2:30 PM. By this time, the index had stabilized at around +0.6%, just shy of the 7,500 points mark. This steady performance remained consistent with just 40 minutes left in trading, amid a notably quiet market due to a public holiday, resulting in a mere €1.15 million exchanged over the span of 8 hours.
Key Movers and Economic Concerns
The CAC40 index found support from Teleperformance, which saw an increase of 3.6%, followed closely by Bureau Veritas with a rise of 2%. While LVMH also contributed positively with a 2% gain, the absence of significant declines kept the market buoyant, with Renault being the only notable laggard at -2%.
The automotive sector faced challenges, with Michelin and Stellantis down by 1.6% and 0.8%, respectively. As Donald Trump’s inauguration approaches in just 11 days, worries about potential trade conflicts loom large. According to CNN, Trump may declare a national economic emergency to expedite the implementation of ‘universal tariffs’ aimed at addressing the trade deficit without needing Congressional approval.
The euro is under pressure as it slipped by 0.2%, dipping just below $1.03000 after recently hitting a nearly three-year low against the dollar at $1.0265. This decline may offer opportunities for investors looking to capitalize on export-driven stocks amidst political uncertainty and slow growth, which could prompt further monetary support from the ECB.
In terms of economic indicators, German industrial production showed a notable rebound, increasing by 1.5% in November after a revised decline of 0.4% in October. Additionally, the German trade balance reported a surplus of €19.7 billion for November, a significant increase from the previous month’s €13.4 billion surplus.
In the bond market, U.S. government bonds stabilized after recent fluctuations, with the ten-year yield easing slightly to 4.69%. European markets mirrored this trend, with the German ten-year Bund yield rising by 1 basis point to 2.525%, while the French OAT saw a 2.5 basis point increase to 3.383%, resulting in a spread of 86 basis points.
In commodity news, oil prices in London climbed by 0.9%, reaching $77. Additionally, Airbus announced a significant firm order from Taiwanese Starlux Airlines for five more A350F cargo planes, effectively doubling their initial order from last year. Meanwhile, Sanofi reported that its new subcutaneous formulation of Sarclisa has successfully met the primary evaluation criteria in the phase III IRAKLIA study for refractory or relapsed multiple myeloma.