(BFM Bourse) – The Paris Stock Exchange finally managed to maintain a bullish bias at the end of a very undecided session. The support factor is to be credited to Wall Street, which is trying to regain its health after another week of falling US indices. Joe Biden’s optimistic statements, ruling out a recession scenario, also cheered markets worried about the effects of an economic slowdown.
Thank you Wall Street. The Paris Stock Exchange showed a more than volatile trend before the opening of the American markets. Rising sharply in early trade, the CAC 40 was on AC late morning, swinging back and forth around equilibrium before recovering in the wake of a solid open on Wall Street. The CAC 40 thus rebounded by 1.17% to 6,358 points to close above its level at the opening on Monday morning at 6,350.88 points.
On Wall Street, the stakes are even higher, the American indices show heavy declines while investors are now worried about the resistance of consumption, a key driver of the economy, after the warnings issued last week by the distributor American Target (sanctioned by a 25% fall in the stock market) and even by the world leader Walmart, the latter suggesting that their profits are exposed to the scissor effect of rising costs and a slowdown in demand. United States President Joe Biden also sought to reassure about a possible recession in the country against the backdrop of soaring prices, during a trip to Tokyo.
In this context, the minutes of the last meeting of the monetary policy committee of the American central bank, which must be published on Wednesday, will be closely watched by the operators. They will try to detect the slightest indication of a possible tightening of the Federal Reserve’s tone on its key rates. On Wall Street, cheap takeovers and mergers and acquisitions are also driving the rating with a Dow Jones which gains 1.28% as does the Nasdaq while the S&P 500 is progressing by 1.78%. .
End of negative rates in Europe
In Europe, the morale of German entrepreneurs was surprisingly good in May thanks to the recovery of activity in services according to the Ifo survey. For the second consecutive month, the business climate has therefore improved despite inflationary pressures, after a heavy drop in March caused by the war in Ukraine. The impact of inflation on global economies is in focus as European Central Bank (ECB) President Christine Lagarde said a first rate hike should be decided in July along with an exit from interest rates. negative interest by the end of the third quarter.
On the values front, Rubis gained 5.01% and TotalEnergies rose by 1.72% supported by the robustness of black gold prices.
Sanofi gains 1.37% as the US Food and Drug Administration (FDA) approves Dupixent (dupilumab) 300mg, once weekly for the treatment of eosinophilic esophagitis in patients over the age of 12 years old, weighing at least 40 kg.
Publicis contains its losses at 0.29%, penalized by a note from Morgan Stanley which downgrades its opinion on the file to be underweighted with a target price of 48 euros.
Down more than 4% in session, Vinci limits its losses to 1.50% while several of its subsidiaries were indicted in February for “private corruption”, the Nanterre prosecutor’s office said on Friday.
First steps on the Lhyfe Stock Exchange
On the rise for its first stock market steps in the form of “promises of actions”, the producer of green hydrogen Lhyfe finally yields more than 7% compared to its IPO price set at 8.75 euros, i.e. at the bottom of the range. indicative of the operation.
On the foreign exchange market, the euro which was in difficulty after the actions of the American Federal Reserve on its rates, is strengthening against the greenback at 1.0677 dollar after the declarations of the ECB on its monetary policy. Oil prices remain well oriented, supported by the calm on the health front in China, with Brent at $113.15 and WTI at $110.81
Sabrina Sadgui
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