(BFM Bourse) – The Paris Stock Exchange is staying the course for this first session of April. The CAC 40 closed up 0.3%, driven by the rebound in oil stocks after OPEC +’s decision to make production cuts. Up almost 6%, TotalEnergies was the main contributor to the day’s progress.
The Paris Stock Exchange is still capitalizing on its good performance last week. The CAC 40 gained another 0.32% to 7,345.96 points after registering a high in the session at 7,362.39 points (+0.53%).
Friday, the Parisian place had closed the first quarter of 2023 up more than 13% at the end of a month of March marked by a banking crisis.
For this first session of April, the Parisian index was carried by TotalEnergies which rebounded by 5.9%. Other oil-related stocks are also progressing, such as CGG which advanced by 6.5%
The rise in these stocks followed in the wake of that of oil. Brent crude from the North Sea for delivery in June advanced 6.10% to 84.75 dollars a barrel, while that of May on WTI listed in New York rose 6.2% to 80.34 dollars a barrel.
Banks continue to rebound
Black gold prices are supported by the surprise announcement on Sunday of production cuts by several member countries of OPEC+ (the Organization of Petroleum Exporting Countries associated with certain countries including Russia). Saudi Arabia has decided to implement cuts of 500,000 barrels per day from May until the end of the year, followed by Iraq (211,000), the United Arab Emirates (144,000), Kuwait (128,000), Kazakhstan (78,000), Algeria (48,000) and Oman (40,000).
In total, these declines exceed 1.15 million barrels per day, or about 1% of daily world production, which stands at around 100 million barrels per day.
This announcement casts doubt on the outlook for demand for oil and also risks complicating the task of the major central banks, which are currently trying to curb persistent inflation by tightening their monetary policies.
“It will take some time to see the exact impact of this on global prices as demand concerns persist, but this is another potential factor putting upward pressure on inflation. , after being largely an improving factor this year”, commented the strategists of Deutsche Bank.
Beyond oil…
On values, in addition to oil, the banks continue their recovery, Societe Generale took over 2.5% and BNP Paribas 1.1%. “Banking stress seems to be stabilizing,” note the economists at La Banque Postale Asset Management.
Atos advanced 0.9%. The group announced on Monday that it had finalized the sale of its operations in Italy to the Italian group of digital services and solutions Lutech.
On the side of slightly more modest capitalisations, Innate Pharma rebounded by 11.8%. The biotech took advantage of the announcement of its alliance with the Japanese Takeda, for the research and development of conjugated antibodies (“Antibody Drug Conjugates” – ADC), which are mainly used to treat celiac disease, gluten intolerance .
On the foreign exchange market, the euro took 0.2% to 1.0892 dollars.
Sabrina Sadgui – ©2023 BFM Bourse