Cac 40: Strange euphoria on the Paris Stock Exchange which has had its best session since mid-March

(BFM Bourse) – Back at 6,000 points, the Paris Stock Exchange jumped 3.2% on Friday, its biggest rise since March 16. After two weeks of decline, this spectacular rebound allows the Paris star index to record a clearly positive weekly score (+3.46%). The easing on bond rates seems to calm the markets.

The Paris Stock Exchange returned to 6,000 points thanks to a copious rebound of 3.23% and achieved its best daily performance since March 16 (+3.68%). On a weekly basis, the CAC 40 is thus credited with a gain of 3.46% – the bulk of the performance was achieved this Friday – after significant declines across the previous two weeks (-4.6 % then -4.92%, drops of unprecedented magnitude since the start of the conflict in Ukraine), and a series without much enthusiasm since Monday.

Paradoxically, the bad news is welcomed by the markets, the operators hoping that the Fed will be more accommodating than expected in the coming months, in light of these degraded statistics. Earlier in the afternoon, investors indeed learned of a sharp deterioration in US consumer confidence to reach an all-time low of 50 points. American consumers are in low spirits, depressed by inflation that is cutting into their standard of living, for nearly one in two respondents.

The Parisian rating is also inspired by the continued rebound of Wall Street. At the close of the European markets, the Dow Jones gained more than 2%, the S&P 500 won 2.3%, an increase which would allow it to sign only its second positive weekly performance in the space of the last twelve weeks. .

Overall, the decline suffered by the markets since the last high point reached at the end of March seems to have gone far enough to factor in the risks weighing on the economy and the tightening of monetary policies. Timidly, US Treasury bond yields even seem to be easing recently, suggesting that the Fed has regained credibility – all the same it took Jerome Powell’s assertion of his “unconditional” determination to fight inflation, in mentioning that if this was not the objective, it was possible that the rise in rates would lead to or precipitate a recession…

Barely three weeks away from the publication season, news on the micro-economic front is still very limited, especially on the eve of the weekend.

Tech is on the rise

Stocks in the technology sector were well oriented with the recent easing of interest rates. In Paris, Dassault Systèmes rose by 4.4%, Teleperformance rose by 4.10%.

Sanofi (+5%) for once benefited from a positive clinical announcement, since its bivalent vaccine against the Omicron variant of Covid and developed in collaboration with GSK became the first candidate to demonstrate its effectiveness, in the part of a phase 2 trial (intermediate stage of clinical trials).

The promoter Nexity gleaned 2.6% on the announcement of the acquisition of a majority share of Angelotti, a leading player in the markets of Montpellier, Béziers, Nîmes and Perpignan – cities which currently benefit from demographic dynamism important, among the strongest growth rates in France over the last decade.

Among the small caps, the indescribable Navya saw its rebound crumble over the day despite the announcement of yet another memorandum of understanding for a test of its shuttles from a potential operator, here the ministry of Transport and Telecommunications of the Kingdom of Bahrain.

Valneva falls back

On the other hand, Valneva plunged by more than 11%, after its surge on Thursday following the green light given by the European Medicines Agency for the anti-Covid vaccine VLA2001.

Flashback also, but in the other direction, for oil with a barrel of Brent at 113.51 dollars (+3.35%) and 107.91 dollars (+3.6%) for WTI.

On the foreign exchange side, the euro rose 0.29% to 1.0554 dollars.

Sabrina Sadgui – ©2022 BFM Bourse

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