CAC 40 Rebounds Following Rocky Start

on Nov 17, 2016

After a rocky start the CAC40 has rebounded well today to currently sit on a slight gain, 0.16% up. The start of the day was marked by a combination of the Trump rally showing signs of fading, oil slipping back from the strong gains of the last couple of days and investors waiting for the expected announcement of a December rates increase as Fed boss Yellen meets congress today to testify. The dollar retreated against the euro with Yellen expected to intimate concerns around its surge to 13 year highs this week. Yellen’s testimony will take place at 15:00 GMT today and markets should be expected to react to what is said.

Yesterday the CAC 40 closed 0.78% down with the financial, industrials and consumer goods sectors weakest. Industrial conglomerate Bouygues was the day’s best performer as markets reacted positively to a better than anticipated rise in the company’s Q3 operating profit. Publicis Groupe and Cap Gemini also both finished Wednesday’s session around 2% up.
Schneider Electric lost almost 3%, slightly more than the discounted price offered on Tuesday’s close for a share placement, as Bpifrance and Credit Agricole look to offload a 1.85% stake in the company. Lafargeholcim, the building materials manufacturer was the day’s worst performer, losing a little over 3%. The company has been forced to deny accusations that its operations in Syria during 2013-2014 may have contributed to financing Islamic State militants. The company also announced that it has increased its ownership stake in two Indian cement companies, Ambuja Cement and ACC Limited, by 1.49 percent and 4.19 percent, respectively. Airbus also closed almost 3% down.

Tyre-maker Michelin is doing well today, up 1.55% while Nokia continues its recovery from heavy losses on Tuesday, when it announced its expectation that the mobile technology market would shrink next year and show growth of only an average of 1% up until 2021. Mobile networks operator Orange is up almost 1.5% and Moet Hennessey Louis Vitton is also showing gains, 1.38% in the black.
So far the day’s biggest faller has been Sodexo, which is down 2.31%. The catering group, second only to Compass globally, announced that 15/16 underlying revenue had risen by 2.5% and the operating profit by 8.2% to 1.2 billion euro. The company also announce a dividend increase of 9.1% to 2.40 euros a share and said it would accelerate the pace of its acquisitions. However, the impact of Islamist terrorist attacks in France knocked 45 million euros from revenues as the domestic tourism industry suffers. France accounts for 15% of the group’s turnover.

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