(BFM Bourse) – A little early Christmas present for the markets. The Paris Stock Exchange rose sharply at the close, perked up by the publication of a slowdown in the rise in the consumer price index in the United States. The CAC 40 gained 1.4% on Tuesday evening after conquering the peaks of late March during the session.
Does the year-end rally start this Tuesday? In any case, the orientation of the markets since the beginning of the afternoon has taken on airs. The reason for the enthusiasm: US inflation came in below economists’ expectations, boosting equity markets.
While it was up by less than 0.9%, the CAC 40 ended with an increase of 1.42% to 6,744.98 points after posting its best performance in session since November 10 and returning to its most highs at the end of March (+2.57% to 6,823.10 points).
“A nice package” for the Fed
In the eleventh month of the year, the consumer price index in the United States increased by 7.1% over one year and “core” inflation, which excludes energy and food prices, increased by 6%. Economists surveyed by the wall street journal expected respective rates of 7.3% and 6.1%.
Tuesday’s publication confirmed that “ultra-hawkish (ultra-restrictive) betting is now over,” said Naeem Aslam, market analyst at Avatrade.
“In summary, Santa delivered a pretty cool package to the Fed. [Réserve fédérale américaine, NDLR] who can now celebrate Christmas more serenely knowing that inflation is moving in the direction it wants with a lot of buoyant winds behind it,” he adds. In the process, the Federal Reserve (Fed) will start a monetary policy meeting which will end on Wednesday Bond yields fell following the publication of US inflation The rate on the 10-year debt of the United States moves to 3.746% at the close of the European indices, against 3.592%, shortly before the publication of US inflation.
Revenge of the techs
Sensitive to changes in interest rates, techno stocks are picking up. STMicroelectronics (+3.4%) and Dassault Systèmes (+3.3%) finished at the top of the CAC 40 on Tuesday evening. Between the two is inserted the real estate Unibail-Rodamco-Westfield (+3.3%) also sensitive to the rise in yields.
Plastic Omnium, which has just risen to 100% in the capital of the company HBPO, advances by 1.1%.
Elior rebounded more than 11.5% on the back of Citigroup’s buy recommendation.
Neoen regained 4.6%, benefiting from an increase in its recommendation from Barclays to “overweight”, as well as the announcement of solar and wind project gains in France, in addition to a contract with the lending brand. to wear H&M.
On the side of smaller caps, Alpha Mos rose 11.4%. Its subsidiary BOYDSense was rewarded for its glucose monitoring device, as part of the “DCB Innovation Challenge 2022”.
In other markets, the euro climbed 1% to 1.0645 against the dollar after recording modest gains before the publication of US inflation. Oil prices rebound strongly. North Sea Brent crude for February delivery rose 3.3% to $80.59 a barrel, while New York-listed WTI rose 3.1% to $75.41 a barrel.
Sabrina Sadgui – ©2022 BFM Bourse