The contraction of the Paris stock market continues: after losing 0.9% yesterday, the Parisian index is down a further 0.9% at this stage of the session, returning to the symbolic 7,000 pts mark that had been left behind since March 2023.

Clearly, the agreement reached at the last minute last weekend to avoid a shutdown in Washington has not exactly thrilled investors.

Deutsche Bank believes that, while the agreement has eliminated a tangible risk to the economy, it also potentially opens the door to further rate hikes.

Thus, according to futures contracts, the probability of a hike at the next FOMC meeting in November has risen from 19% on Friday to 28% on Monday, while that of a hike in December has risen from 39% to 51%, points out the German bank.

It should also be noted that equity markets continue to be penalized by 10-year bond yields, with German bunds hovering around 2.92%, French OATs around 3.50% and US T-bonds around 4.75%, a level not seen for over 15 years.

As a result, investors are moving away from equities and into bonds to take advantage of attractive yields.
In French company news, TotalEnergies and Borealis announce the start-up of their new Borstar® polyethylene unit. With a capacity of 625,000 tonnes per year, this new unit will double the current production of their Baystar joint venture at the Bayport site in Texas.

Carmila has announced a bond issue of 500 million euros maturing in October 2028, with an oversubscription rate of 2.2 times, aimed in particular at financing the acquisition of Galimmo.

Kaufman & Broad reported net income attributable to equity holders of the parent of 45.5 million euros for the first nine months of its 2023 fiscal year, compared with 31.9 million euros for the same period in 2022, as well as a 0.8 point improvement in the operating income recurring rate to 8%.

Alstom presented the hydrogen-powered Coradia Stream train. It is due to enter commercial service in Italy in the Val Camonica between late 2024 and early 2025, on the non-electrified Brescia-Iseo-Edolo line.

Finally, Safran Electrical & Power announces that it has completed the acquisition of Thales' aeronautical electrical systems business, which covers conversion, power generation and electric motors for civil and military aircraft.

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