The Paris Bourse fell 1.1% to 7,428 points, impacted by losses from CapGemini, Pernod Ricard, and Vivendi. In contrast, US markets saw modest gains. Political uncertainties and geopolitical tensions drove gold prices to a record high. US GDP grew at 2.8% in Q3 2024, while job creation surged with 233,000 new jobs in October. Meanwhile, Germany’s inflation rate increased, and France’s GDP rose by 0.4%. Notable corporate updates include Schneider Electric’s sales growth and Airbus’s new orders from Riyadh Air.
The Paris stock market closed down 1.1%, finishing at 7,428 points. This decline was largely influenced by significant losses from CapGemini (-6.4%), Pernod Ricard (-4.3%), and Vivendi (-3.8%).
In contrast, US markets observed a positive trend with the S&P 500 and Nasdaq showing slight increases of between 0.1% and 0.2%, while the Dow Jones rose by 0.4%.
Amid political uncertainties ahead of the upcoming US elections and ongoing geopolitical concerns in regions like the Middle East, Ukraine, and the Taiwan Strait, gold prices hit a new peak at $2,785 per ounce, marking a 1.6% increase.
The trading session also featured a flurry of economic data releases.
The US GDP grew at an annualized rate of 2.8% in Q3 2024, as per the Commerce Department’s initial estimate, a slight downturn from the 3% growth recorded in the previous quarter. This marked the eighth growth quarter out of the last nine, exceeding the 2% threshold.
Additionally, the PCE price index reported an inflation rate of +1.5% unadjusted and +2.2% excluding food and energy, a notable decrease from the prior quarter’s +2.5% and +2.8%.
In a highly anticipated report, the US private sector added 233,000 jobs in October, a surge from September’s 159,000 and exceeding expectations of 115,000, according to ADP’s monthly survey. This represents the most substantial month-on-month job growth since July 2023.
‘Considering the context of post-hurricane recovery, job growth was impressive in October. As we approach the year’s end, US hiring remains strong and resilient,’ noted Nela Richardson, Chief Economist at ADP.
In other significant economic news, Germany’s inflation rate (CPI) rose by +2% in October 2024 compared to the previous month, up from 1.6%. Consumer prices reportedly increased by 0.4% from September to October. The ‘core’ inflation rate, which excludes food and energy, stood at an annualized 2.9% in October, up from 2.7% in September.
French GDP growth, in volume terms, also showed a moderate increase of 0.4% in Q3 2024, according to Insee, following a 0.2% rise in Q2, influenced by the Paris Olympic and Paralympic Games.
Similarly, the eurozone GDP increased by 0.4% and the EU by 0.3%, thanks to positive contributions from France and Italy in comparison to the previous quarter, as per Eurostat’s preliminary flash estimate.
On the bond market, T-Bonds are easing by -1.5 points to 4.26%, while Bunds of the same maturity are tightening by +3.7 points to 2.37%.
The Euro is taking advantage of the yield differential, increasing by +0.4% against the Dollar, now at $1.086/E. Brent crude oil prices rose by +1.8% in London, reaching $72.6 a barrel.
In corporate news, Schneider Electric reported a 5.9% increase in sales to €9.31 billion for Q3 2024, driven by an 8% organic growth—marking a record for this period.
Legrand acknowledged the French Competition Authority’s enforceable decision, imposing a €43 million fine for applying derogated prices in the French market from 2012 to 2015. The company disputes these allegations and reserves the right to appeal.
Airbus has confirmed that Riyadh Air, the new international airline based in Saudi Arabia, has placed a firm order for 60 A321neo family aircraft.
Finally, TotalEnergies announced the commencement of production from the third development phase of the Mero field, situated 180 kilometers off the coast of Rio de Janeiro, Brazil, within the pre-salt Santos basin.