Stocks are expected to continue their rise after Donald Trump's return to the White House 
 
Eurostoxx 50 3,220.22 points +0.92% 
CAC 40 4,871.87 points +0.97% 
DAX 30 12,828.31 points +1.10% 
FTSE 100 5,942.94 points +0.69% 
SMI 10,303.06 points +0.49% 
AEX 557.92 points +0.87% 
BEL 20 3,293.89 points +1.41% 
IBEX 35 6,837.90 points +1.23% 
 
DJIA 28,148.64 points +1.68% 
Nasdaq 11,332.49 points +2.32% 
S&P 500 3,408.63 points +1.80% 
 
Nikkei 225 23,427.75 points +0.50% (price at 7:25 am) 
 
Exchange rate at 07:20 
Change from closing in New York 
 
EUR/USD 1.1793 +0.05% 
EUR/JPY 124.58 -0.04% 
USD/JPY 105.65 -0.09% 

TO FOLLOW IN FRANCE

Veolia confirmed on Monday evening its intention to acquire control of Suez after Engie agreed to sell its 29.9% stake, while stressing that the offered price of 18 euros per share could be adjusted if the value of the utilities company were to be affected. e.

Veolia intends to file a voluntary takeover bid for the balance of Suez shares. "This public offer will be in cash, without capping, Veolia reserving the possibility of adding a subsidiary branch capped in Veolia shares", the group said in a statement.

Engie's Board of Directors accepted Veolia's offer while the State opposed the transaction. "In the absence of an amicable agreement between Veolia and Suez", the State voted against the proposal to sell this stake, said the Ministry of Economy. The State is a 22% shareholder of Engie.

Veolia's public offer for Suez will be filed at the latest when the necessary regulatory approvals, particularly in terms of competition, are obtained within 12 to 18 months. Veolia reserves "the right to file the public offer at any time before obtaining these authorizations," the statement said.

However, Veolia's public offer will only be submitted once Veolia's project has been favourably received by Suez's Board of Directors, if necessary after the general meeting of its shareholders, added the group. In this perspective, Veolia said it wanted to "resume discussions" with Suez on Tuesday.

In addition, the luxury group Kering announced the launch on Monday of a private placement for the sale of a block of 5.9% of Puma's capital. This placement is made to qualified investors by way of accelerated construction of an order book, Kering said in a statement. Following the transaction, Kering will hold approximately 9.8% of the outstanding Puma shares.

The company Financière Agache, controlled by the company Groupe Arnault, itself controlled by the Arnault Family Group, crossed the threshold of 5% of Voting rights of Lagardère on September 29, according to a notice published Monday by the Autorité des marchés financiers. Financière Agache has increased its stake in Lagardère to 6.69% of the capital and 5.07% of the voting rights of the media and distribution group. The concert formed by Arnaud Lagardère and the companies Lagardère, LM Holding and Lagardère Capital with the companies Groupe Arnault and Financière Agache, held 13.95% of the capital and 16.08% of the voting rights of Lagardère on September 29.

On the macroeconomic front, investors will follow tuesday after the close of the markets the latest economic note of the National Institute of Statistics and Economic Studies (INSEE), published the day after the announcement of new restrictions in Paris and in the three departments of the small crown intended to fight against the 'increase in Covid-19 cases.

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European equity markets are expected to open slightly higher on Tuesday, still supported by signs of diminishing political uncertainty in the United States and improving health of President Donald Trump.

At 7:35 a.m., the CAC 40 futures contract gained 10 points, or 0.2%, according to data from broker IG Markets. The contract on the DAX 30 was up 21.5 points, or 0.2% also, and the ftse 100 contract was up 5 points, or 0.1%.

Donald Trump left the hospital on Monday night after three days of hospitalization for treatment of Covid-19 and returned to the White House, where the number of officials infected with the virus is increasing.

"I feel really good! Don't be afraid of Covid. Don't let it dominate your life," the White House tenant said in a tweet monday shortly before the U.S. stock market closed.

However, questions about his state of health remain. Political and economic uncertainties have led to high market volatility in recent days and the turbulence looks set to continue. The Cboe Volatility Index, dubbed the "Fear Index" on Wall Street, is near its highest level in nearly a month.

Democrat Joe Biden, however, appears to have increased his lead over the president, according to a poll conducted by the Wall Street Journal and NBC News within two days of the first debate between the two candidates. The risk of contesting the outcome of the November elections thus seems to be decreasing, which would be welcomed by the markets. Nevertheless, the poll was conducted before Donald Trump's positive diagnosis of Covid-19.

Reassured about the state of health of the US president and hoping for a new fiscal stimulus plan, Wall Street ended higher on Monday. The Dow Jones Index (DJIA) gained 1.7% to 28,148 points. The broader S&P 500 index rose 1.8% to 3,408 points. The tech-rich Nasdaq rose 2.3% to 11,332 points.

In the wake of Wall Street's gains, equity markets are rising in Asia on Tuesday. At the end of the session, the Nikkei index gained 0.5% in Tokyo, while the Hang Seng of the Hong Kong Stock Exchange gained 0.8%. Stock exchanges in mainland China are still closed due to the country's National Day celebrations.

Obligations

U.S. Treasury yields hit their highest levels in months on Monday, buoyed by hopes of further U.S. fiscal stimulus.

The yield on the ten-year Treasury bond ended at 0.760%, its highest closing level since June 9, from 0.694% on Friday. The yield on the 30-year stock rose to 1.565%, from 1.48% on Friday.

Hopes of a deal on a new stimulus package in Washington ahead of November's presidential election fueled rising U.S. bond yields, after leaders of both major parties in Congress reported progress in negotiations. The improvement in Donald Trump's health and the advance of Democratic candidate Joe Biden in the polls, a month before the presidential election, also seem to have eased fears of political tensions after the election.

 
 
   
FOREIGN EXCHANGE

The dollar continues its decline on Tuesday against the euro and other major currencies, as risk appetite remains predominant in the markets.

"The fact that President Donald Trump contracted Covid-19 has created new uncertainties regarding the US presidential election, just one month before the election date," Goldman Sachs said. The bank adds that it does not know how the president's illness will affect the election results, but in the event of an increased probability of a victory for Joe Biden in the presidential election and the Democrats in the Senate, the weakness of the dollar should increase, according to her, while a development favorable to a re-election of Donald Trump would support the US currency.

Oil

Oil prices are trading slightly higher on Tuesday, after rising more than 5% on Monday.

A strike in Norway, which will result in a drop of 300,000 barrels per day in global supply, and a likely increase in demand for kerosene due to the resumption of air transport in Asia, could be positive factors for oil, according to AxiCorp.

In addition, Texas, the largest state consuming gasoline in the United States, is preparing to announce the end of certain restrictions put in place to counter the spread of the coronavirus. However, a new storm threatens to disrupt energy production in the Gulf of Mexico. Tropical Storm Delta turned into a hurricane on Monday and is expected to reach the Gulf of Mexico on Wednesday, according to the National Hurricane Center.

MORNING BULLETIN: October 6, 2020 -2-

At 7:25 a.m., the December contract for North Sea Brent gained 14 cents to $41.43 a barrel, while the November contract for Nymex-traded light sweet crude (WTI) gained 11 cents to $39.33 a barrel.