With Donald Trump's grand slam - unexpected from the media's point of view - Wall Street reopened to a firework display of absolute records and impressive upside gaps the likes of which are seen only a handful of times a decade.

But it's not a party for everyone: the scenario on the CAC40 seems as unexpected as the Republican candidate's sweeping victory, since it had started the session at +2%, above 7.570 but turned around to lose -210Pts in a straight line, towards 7,360 (-0.6 to -0.7%).

The Euro-Stoxx50 followed the same trajectory, falling back from 4,945 (+2%) to 4,825 (-0.4%).
On Wall Street, the Dow Jones (+3.1%) reopened on a rare +1,000Pts 'gap' (unprecedented on the 21st).000Pts (unprecedented in the 21st century) and soared above the 43,325 of October 18, the S&P500 jumped over 130Pts (+2%) to 5,910 (vs. 5,875 on 17/10) and the Nasdaq (+2%) set a record at 18,860Pts vs. 18,775 intraday on October 30.
And the picture would not be complete without the Russell-2000, the main beneficiary of an "America First" watchword that sent it soaring +5.4% to 2,385Pts, a score surpassed only once, 3 years ago, in early November 2021.
The triumph of the Republicans is total: the popular vote resembles a tidal wave, with 6 million votes 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 measures, under the protection of increased tariffs against China, and even Europe... not forgetting Mexico and even Canada.

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


In view of the political news, a number of macroeconomic data were published in Europe to relative indifference, notably the composite PMI indices for the month of October.

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 -1.8pts, our OATs deteriorated +0.8pts to 3.174%, Italian BTPs +5.5pts to 3.738%.
Note that the dollar jumped +2% in the middle of the night, while the euro fell towards 1.0710/E as soon as Trump's victory appeared certain (he had 267 of 270 electoral votes, but Alaska would provide him with the missing 3, this state being 60% Republican, not counting other swing states swinging in Trump's favor).

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

Tuesday evening's and this morning's trading highlights also include investment company Eurazeo, chemical companies Solvay and Arkema, renewable energies producer Neoen and credit insurer Coface.

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