The Paris Bourse ended the session down 0.51%, at 7369 pts, a far cry from the morning's momentum which had lifted the Paris index above 7570 pts (+2.1%).
In particular, the CAC40 had to contend with declines in Crédit Agricole (-3.7%), Pernod Ricard (-3.3%) and L'Oréal (-2.8%).

The downward trend was also confirmed in Europe, with the Euro-Stoxx50 falling from +2% this morning to -1.1%.

On the other side of the Atlantic, the four main U.S. indices set a flurry of absolute and all-time records following Donald Trump's victory.

The Dow Jones (+3.1%) reopened with a rare gap of +1,000pts (unprecedented in the 21st century), the S&P500 jumped 2% and the Nasdaq (+2.2%) set a record at 18,860pts, compared with 18,775 intraday on October 30.

And the picture would not be complete without the Russell-2000, the main beneficiary of the "America First" slogan, which saw it soar +5.4% to 2,385pts, a score on a record high.385Pts, a score surpassed only once, 3 years ago (November 2021).

The triumph of the Republicans is total: the popular vote resembles a tidal wave, with 6 million votes cast in favor of the Republican Party, which will take control of both houses of Congress.... for at least 2 years, giving Donald Trump carte blanche to roll out his fiscal measures of tax cuts and stimulus packages, under the protection of increased tariffs on China and even Europe... not forgetting Mexico and Canada.

The downturn in European markets is being fuelled symmetrically by fears of an aggressive trade policy and geopolitical tensions, notably due to foreseeable changes in NATO funding, which would rely more heavily on European contributions.

In view of the political news, macroeconomic data published in Europe were greeted with relative indifference.

The HCOB PMI composite index of overall activity in France, calculated by S&P Global, fell from 48.6 in September to 48.1 in October, signalling the sharpest contraction in French private sector activity since last February.

The HCOB composite PMI index for overall activity in the eurozone came in at 50 in October, reflecting complete stability in private-sector activity, after showing a slight contraction to 49.6 the previous month.

The main point of concern for the markets is the spectacular rise in yields: the US 30-year is up +22.5pts to 4.675%, and the 10-year is up +21pts to 4.4860% (the worst score since June 10 or July 1).

In Europe, Bunds eased by -1.8Pt, our OATs deteriorated by +0.8Pt to 3.174%, Italian BTPs by +5.5Pts to 3.738%.

Note that the Dollar jumped in the middle of the night by +2%, with the Euro falling towards $1.071/E as Trump's victory loomed.

The 'figure of the day' concerned oil inventories: data released by the US Energy Information Agency (EIA) showed a rise of 2.1 million barrels of crude oil in the US to 427.7 million barrels in the week to October 28.

In Paris stock news, Crédit Agricole unveiled a 10.9% increase in underlying group share net income for the third quarter of 2024, pointing in particular to growth in its savings management and insurance business.

Arkema reported a slight 5.1% fall in net income before non-recurring items to 168 million euros for the third quarter of 2024, or 2.25 euros per share, but a 5.4% rise in EBITDA to 407 million, representing a margin up 0.4 points to 17%.

Finally, at the end of September 2024, Eurazeo reported assets under management (AUM) up 7% year-on-year to 35.5 billion euros, of which 25.2 billion for third parties (Limited Partners and private clients), up 12% year-on-year.



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