(BFM Bourse) – After an interruption of three days, the CAC 40 is moving up sharply at mid-session on Tuesday. Investors welcome the end of the mandatory quarantine for people arriving on Chinese territory.
Risk appetite returns to the Paris Stock Exchange. This Tuesday, the Parisian square resumes its journey after an extended three-day weekend to celebrate the Christmas holidays. The CAC 40 took 0.96% to 6,567.42 points at mid-session.
Good news particularly pulls all the markets: the end of the quarantine on arrival in China.
Beijing announced Monday evening that from January 8 the country would no longer ask people arriving on Chinese territory to isolate themselves for eight days (five in hospital and three at home), bringing a final knife blow to its zero-Covid policy. Only a negative test of less than 48 hours will be required from the next month.
“It is certainly something that traders and investors have been hoping for for a long time, as China has remained very strict with its zero-Covid policy throughout this year,” underlines Naeem Aslam of AvaTrade. “Nevertheless, the recession remains a major concern for investors and traders, which should limit any corrective movement in the markets,” he adds.
China also announced that it would step up support for the catering and tourism sectors which have been hit hard by the pandemic.
The Chinese markets logically closed higher. The Shanghai Composite ended up nearly 1% while the Shenzhen advanced 0.9%.
Values sensitive to the evolution of the pandemic in China, luxury stocks carry the CAC 40. LVMH takes 2.2%, Hermès and Kering each win around 1.8%.
Contrary to the optimism that floats on the market, Ipsen fell by 1.4%. The group has received a full response letter from the US health authority regarding the application for approval of its palovarotene molecule (which extends the review period).
On other markets, the euro gained 0.1% against the dollar at 1.0654 dollars. Oil prices are gaining ground. North Sea Brent for February delivery advanced 1% to 85.32 dollars a barrel while WTI listed in New York for the same maturity also rose 0.9% to 80.30 dollars a barrel.
Julien Marion – ©2022 BFM Bourse