(BFM Bourse) – Calm, very calm start to the week on the Paris Stock Exchange after the storm that put investors’ nerves to the test in previous sessions. Deprived of the Wall Street compass, the CAC 40 is still recovering, back to 5,900 points. Initiatives were however limited, following the results of the legislative elections. The presidential party did not in fact succeed in obtaining an absolute majority in the National Assembly after the ballot.
In the absence of Wall Street and statistics, operators’ interest in stock market matters was more than limited. The CAC 40 closed up 0.64%, slightly overcoming 5,900 points to 5,920.09 points, in very tight volumes. Only 2.82 billion euros were traded on Monday. The rise is not the rebound of the big days but it has the merit of changing the trend in a Parisian market which suffered its heaviest weekly loss (-4.9%) since the week following the start of the offensive. Russian in Ukraine.
Operators, however, remained on their guard following the results of the second round of legislative elections. The French political landscape is this Monday clearly fragmented, the presidential party having failed to obtain an absolute majority at the end of the second round of legislative elections on Sunday, far from it. The risk of a blockage of the country begins to make its way on the side of the French bond market, the rate of the OAT to 10 years which was trading at 2.21% Monday morning tended to 2.30% at the close of the European markets.
The American place is on its side closed doors Monday for the new holiday of “Juneteenth” – contraction of “june” (June) and “nineteenth” (nineteen) – marking the abolition of the end of slavery at the federal level. What offer respite to American operators, the New York Stock Exchange having posted a delay of 5.79% for the S&P 500 last week. Like the European markets, Wall Street had been somewhat cooled by the indicators Conference Board advances showing a contraction in May, driving the nail of a scenario of a slowdown in the American economy. Especially since the central bankers, except those of Japan, are in tune to put out the fire of soaring prices. Investors fear that the Fed’s deployment of major measures against inflation will discourage demand and push the world’s largest economy into recession.
On this subject, the President of the European Central Bank, Christine Lagarde, confirmed the Frankfurt institution’s desire to tighten its interest rates twice during the summer and reaffirmed its desire to limit the divergence of yields between member countries of the euro zone.
Pfizer takes a stake in Valneva
On the corporate side, the news is sparse. We can nevertheless count on Valneva which rebounded by 29.3% while Pfizer will acquire 8.1% of the French biotech for more than 90 million euros through a reserved capital increase.
The prize for the biggest increase on Monday went to Crossject, which soared by 94.5%. The self-injection specialist has just won a “founding” contract for the supply of its drug Zeneo Midazolam, a needle-free self-injectable form dedicated to epileptic seizures in the United States.
On the CAC 40, Renault accelerated upwards (+9.74%), taking advantage of a note from Jefferies which went buyer of the file with a price target housed at 40 euros against 22 euros previously.
Oil is deflating
On the other hand, Saint-Gobain lost nearly 4% while its Irish comparable Kingspan plunged 12% in Dublin, noting a notable drop in its orders over the last two months. Rexel for its part lost more than 5% for the same reasons.
The single currency is holding up despite the negative signal sent by the results of the second round of legislative elections in France. The euro kept its lead with an increase of 0.4% to 1.0533 dollars. As for oil prices, these stand at 110 dollars for WTI and 113.8 dollars for Brent, after having lost 5% under fears of a recession in the world economy.
Sabrina Sadgui – ©2022 BFM Bourse