(CercleFinance.com) – The Paris stock market ended the day at its highest of the day, with a gain of 1.17% which brings the Parisian index to 6,358 points. The CAC40 is notably supported by banking stocks with Société Générale (+4.2%), BNP Paribas (+4.1%) and Crédit Agricole (+3.7%).
We find this upward momentum in London (+1.5%), in Frankfurt (+1.1%) as well as on the E-Stoxx50 (+1%).
The New York indices are not to be outdone, the S&P 500 rose 1.5%, while the Dow Jones gained 2%, ahead of the Nasdaq (+0.8%).
Investors are still trying to find the right positioning between high inflation, reduction of the airfoil at central banks and struggling global growth.
In this respect, the business climate is improving a little in Germany (a good surprise), according to the Ifo institute index which reached 93 in May, after 91.9 the previous month, an increase driven by a better assessment of the current situation while expectations remain more or less stable.
“The German economy is showing resilience in the face of the problems of inflation, bottlenecks and the war in Ukraine”, comments the Munich-based institute, adding that “there is no observable signal of a recession.
Other data concerning the economic situation will be scrutinized by investors this week: the latest European PMIs will be on Tuesday’s program and the Fed’s ‘minutes’ will be unveiled on Wednesday.
‘Markets will also watch for monkeypox disease, a type of viral infection the WHO warned against over the weekend as 92 cases have already been identified in 12 countries which are not usually accustomed to this pathology’, underline the teams of Danske Bank (it is very little contagious, very little lethal, can be cured well… but what an ‘intimidating’ name and what excellent support for the ‘propaganda of fear’, Editor’s note).
On the bond front, rates remain tight at more than 1.5% (+6pts to 1.528% for our OATs) while Christine Lagarde announces an ‘exit from negative rates’ in September.
US T-Bonds (+5Pts) remain a little below 2.85% and well anchored below 3.00%.
Despite bad news that tends to accumulate, some strategists remain hopeful that investors are finally starting to buy the dip, a mindset that has often taken markets out of business in the past.
‘There are many companies today that are posting results well above those of before the pandemic, while their stock prices are still evolving at levels close to or below those of 2019’, we do so remark in Raymond James.
In French company news, Sanofi announced on Friday evening that the United States FDA has approved its Dupixent (dupilumab) 300 mg once weekly for the treatment of eosinophilic esophagitis in patients from the age of 12 years old, weighing at least 40 kg.
Getlink announces that Europorte, its rail freight subsidiary, will modernize its fleet of Euro4000 locomotives by investing in innovative ETCS (European Train Control System) rail signaling technology.
Gaussin says it is strengthening its business in North America by signing an exclusive 20-year agreement with Charbone Hydrogen for the local assembly and marketing of zero-emission APM and ATM vehicles in Canada.
Finally, Invest Securities downgrades its opinion on Carrefour from ‘buy’ to ‘neutral’ with a price target lowered from 22.4 to 20.8 euros, in the wake of lower 2022 earnings estimates both for the half-year and for the first half. year for the French distribution giant. The research office recognizes that Carrefour remains moderately valued, at 11.7 times its expected EPS for 2022, but it notes that ‘the downward pressure on stock market ratios is deteriorating its relative positioning’.
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