On Tuesday, December 24th, the Paris Stock Exchange remained largely unchanged as trading activity slowed down significantly in anticipation of the Christmas holidays. The CAC 40 index, the benchmark for the Paris market, edged up by a mere 0.01% to 8,121.97 points by 09:30 AM (Paris time), a marginal increase of 0.90 points from its previous close of 8,121.07 points.
Quiet Trading Before the Holiday Break
The subdued trading session comes as markets are set to close from Wednesday afternoon through Friday, effectively shortening the trading week. Investors are closely monitoring key economic indicators from the United States, seeking direction amidst the quiet pre-holiday period.
Ipek Ozkardeskaya, an analyst at Swissquote Bank, noted that investors “will be focused on the publication of data in the United States to find a direction.” This includes the release of October’s durable goods orders, November’s industrial production figures, and the second estimate of US economic growth for the third quarter, as highlighted by John Plassard, Head of Investment Strategy at Cité Gestion Private Bank.
US Economic Data and Monetary Policy Implications
Global market participants are keenly observing the activity indicators of the world’s largest economy. These figures are crucial for anticipating the future monetary policy decisions of the US Federal Reserve (Fed). A slowdown in economic growth could provide the Fed with more flexibility to lower interest rates, a move generally favorable for global equity markets. However, a significant deceleration could also trigger concerns about the overall health of the US economy.
Trade Tensions Between China and Europe
Adding another layer of complexity to the market sentiment are the escalating trade tensions between China and Europe. A new front opened on Monday when Beijing announced it would impose tariffs on certain European dairy products. This measure has been strongly condemned by the European Union and European producers, who deem it entirely unjustified.
These “provisional” customs duties, ranging from 21.9% to 42.7%, came into effect on Tuesday, further complicating the trade relationship between the two economic blocs.
Bond Market and Company News
In the bond market, the yield on France’s ten-year government bond stood at 3.57%, a slight decrease from 3.61% at the previous day’s close. Its German equivalent, a benchmark in Europe, was at 2.87%, down from 2.89%.
In corporate news, French pharmaceutical giant Sanofi (+0.20% to 81.74 euros) announced on Tuesday the approval of its drug Dupixent in Japan. The drug is now approved for the treatment of “bronchial asthma in children aged 6 to 11 years with severe or refractory disease.”
The market remains cautiously optimistic, with investors awaiting further clarity from economic data and geopolitical developments before making significant moves as the year draws to a close.
