weekly gain + 2.5%, $ at -0.5% to 1.182, gold recovers 2%

(CercleFinance.com) – The CAC40 (+ 0.7% to 4,947) confirms the crossing of the threshold of 4,900 and ends near the highs of the day (4.954Pts): the balance for the week stands at +2, 5% and the index seems set to close the 4.978 ‘gap’ of September 18 from Monday (a positive day in 90% of cases since May 15).

Paris appreciated at the end of the session while the US indices, hesitating around 4:30 p.m., accelerated: the Dow Jones went back from 0.00% to + 0.8%, beyond 28,650, the S & P500 gained + 1% and the Nasdaq + 1.3% which is boosted by the announcement of an imminent giant takeover bid: AMD proposes to buy Xilinx (which weighs more than $ 25 billion), for a price greater than $ 120 / share, which would enhance the target of nearly $ 30 billion.

NB: the US indices are back to less than 2.5% of their absolute records, the ‘Dow Transportation’ sets a new historical zenith.

The Euro-Stoxx50 gained + 0.5% to 3,571, held back by Frankfurt, which was in the red for a long time before finishing in extremis in equilibrium, at around 13.050Pts.

Wall Street remains optimistic after Donald Trump’s latest statements that there is now ‘a good chance of quickly reaching an agreement on the economic support plan’ in Congress.

Steven Mnuchin and Nancy Pelosi reportedly try to reach an understanding while Republican spokesman Mitch McConnel estimates that there will be no deal for 3 weeks (by the day before the election and probably not before the election) .

‘Buyers have regained control of the markets with a view to a probable victory for Joe Biden and Trump’s words are now considered secondary,’ the Danske Bank teams commented this morning.

‘Even Trump’s comments that he would use tariffs as a weapon against China in his second term did not weaken the markets yesterday,’ the Danish bank said.

This last session of the week promised to be sparse on the statistical front, with wholesalers’ stocks in the United States rising 0.4% in August 2020, according to the Department of Commerce, where the consensus anticipated an increase of 0.5%, after a decline of 0.2% in July (figure revised from an initial estimate of -0.3%).
For their part, sales by American wholesalers increased by 1.4%. At the current rate of sales, it takes 1.31 months for wholesalers to sell off their stocks, compared to 1.35 months in August 2019.

In Asia, however, the CSI 300 index of mainland Chinese large caps gained 2% on Friday following the publication of a Caixin services PMI index up to 54.8 in September, from 54 in August, signaling an expansion of the tertiary sector for the fifth consecutive month.

This session was marked by a sharp weakening of the Dollar (-0.5% towards 1.1820E) and a symmetrical rebound of gold which jumped + 1.9% towards $ 1.927

On the stock side, ST-Micro + 2.7% and Orange + 2.9%, finish leaders of the CAC40.
Eramet stands out as the star of the day with + 12% … the increase accelerating with overdraft redemptions.

Euronext (-4.4%) announces a firm agreement with London Stock Exchange Group for the acquisition of 100% of London Stock Exchange Group Holdings Italia SpA, holding company of Borsa Italiana Group, for a cash amount of 4.325 million euros.

Alstom announces a contract to supply 49 Citadis trams to Nantes Métropole for an amount of nearly 200 million euros.

Crédit Agricole Assurances announces the signing of an agreement with Novo Banco for the acquisition of 25% of GNB Seguros, a non-life insurance company in Portugal, thus increasing its stake to 100% of the capital of GNB Seguros.

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