CAC40: a good start to August, but no volumes

(CercleFinance.com) - The Paris stock market got off to a flying start at the end of August, with the CAC40 posting gains of up to +1.
5% (this morning, around 7650pts), driven by the "luxury" sector with LVMH and Essilor (2.2 to 2.5% each) and ST-Micro (+3%), the day after Joe Biden announced his withdrawal from the race for a second term in the White House.

But the CAC40 - which calmed down a little to +1.1% - climbed in a sidereal vacuum in terms of volume, with less than 900MnsE traded in 7 hours.
The Euro-Stoxx50 soared +1.6% before settling down to +1.3%, while Wall Street disappointed expectations with only +0.5% on the S&P500 and -0.1 to -0.2% on the Dow Jones.... only the Nasdaq confirmed expectations with +1.2%.
Michael Brown, strategist at Pepperstone, expects this news to lead to higher asset volatility, as 'the race for the White House is probably much more open than it was a day or two ago'.
US T-Bonds reacted little to the weekend's political episode with -2Pts to 4.217%.
In Europe, Bunds were stable and our OATs eased by -1Pt to 3.118%.

On the statistics front, no major macroeconomic data is expected this Monday. On the other hand, the following days will see the release of preliminary PMI indices, business climate indices in France and Germany, second-quarter US growth figures and the PCE price index (based on US household income and spending).

The next few days will also be marked by a number of quarterly publications from the big names in the US stock market, including Alphabet, Coca-Cola, Visa, IBM, Lockheed Martin, AT&T and Tesla.

Meanwhile, telecom operator Verizon reported adjusted EPS down 5% for the second quarter, while claiming solid wireless revenues and vigorous broadband subscriber growth.

In Europe, we await quarterly reports from SAP, Deutsche Bank, Unilever and Eni, and in France from LVMH, Carrefour, Orange, Dassault Systèmes, Hermès, Renault, Sanofi, TotalEnergies and Air Liquide.

In other French company news, Vivendi reports that its study to date has demonstrated the feasibility of its demerger project under satisfactory conditions, and has identified the most appropriate stock markets for the three companies once separated.

Canal+ would be listed on the London Stock Exchange, Havas, whose activities are mainly international, would be listed as a joint stock company under Dutch law (NV) on the Euronext Amsterdam market, while a company called Louis Hachette Group would be listed on Euronext Growth in Paris.

Air France-KLM announces the addition of Swiss railroads SBB/CFF to its Air France Smart Connect combined booking system, enabling a combined ticket offer combining an Air France flight and an SBB/CFF train ticket to/from six cities in Switzerland.


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