(CercleFinance.com) – After losing 0.7% yesterday, the Paris Stock Exchange laboriously manages to stabilize (+0.1%): most of the trade is around a pivot of 6,680 Pts but the index returns to the bottom of the 6.670/6/690 range.
Wall Street erased its decline of -0.2% and returned to equilibrium: the E-Stox50 traces its evolution to the US indices.
The inflation figures in Germany published at the start of the afternoon had little impact on the trend.
Consumer price inflation slowed somewhat in Germany in November, shows a first official estimate published on Tuesday: the CPI rose only 10% year on year this month (i.e. -0 .5% sequentially), against +10.4% in October, according to data released by the Federal Statistics Office.
Data published by Destatis show that this slowdown is largely attributable to the deceleration in energy prices, which increased by 38% over the current month on an annual basis, against +43% last month.
The inflation index calculated according to European standards (HICP) shows perfect stability from one month to the next and an increase of 11.3% over one year (against 11.2% expected after 11.6 % in October).
If the European indices are resisting so well, it is because many investors are clinging to the prospects of an upcoming deconfinement in China.
If the number of daily cases continues to increase in mainland China, investors expect a gradual easing of anti-Covid health restrictions after the unrest that rocked the country this weekend.
Some specialists believe that these demonstrations could force Beijing to change its health policy in the coming months.
But very concretely, the ‘fact of the day’ is the closure of the Disney park in Shanghai, the confinement of the megalopolis, the closure of shopping centers… and the authorities are working hard to complete the construction of camps for ‘sanitary quarantine’ on the outskirts of the country’s largest cities, with a capacity of 50,000 to 90,000 people.
Why devote so much logistical effort to the isolation of millions of citizens if it is to immediately announce the renunciation of ‘zero Covid’ and the lifting of mass draconian measures (whole new neighborhoods are confined every day and become open-air prisons, with a ban on driving on the streets)?
We will probably have to wait for the next “Popular National Assembly” next April and analyze the health directives adopted on the occasion.
China’s health minister said on Monday 11/28 on top local media that the ‘zero Covid’ strategy enjoys wide support and gets the people’s full cooperation.
The Chinese stock markets all rebounded on Tuesday, benefiting above all from the announcement of measures to support the economy, with tens of billions of Yuan mobilized.
At the end of the session, the CSI 300 large cap index of the Shanghai and Shenzhen stock exchanges posted a gain of nearly 3% while the Shanghai SSE Composite index rose 2.3%.
In Hong Kong, the Hang Seng index jumped 3.8%.
Speculation surrounding a possible easing of Chinese health restrictions should benefit, among others, the commodities sector.
Stimulus measures support oil prices which take an additional 1% to $84.8 in London, more than $4 recovered since Monday morning.
The small revival of risk appetite, on the other hand, is detrimental to the dollar, which lost 0.3% against the euro, around 1.0370.
On the bond side, our OATs eased by -10pts towards 2.52%, the Bunds by -9pts towards 1.9030%.
Across the Atlantic, T-Bonds are trending symmetrically by +4Ps towards 3.7440%.
The next few days will also be driven by US household spending or the first inflation figures in the euro zone in November, before the highly anticipated employment figures in the United States scheduled for Friday.
On the securities side, Societe Generale announces the launch of the capital increase of ALD with maintenance of shareholders’ preferential subscription rights for an amount of approximately 1.2 billion euros as part of the acquisition project of LeasePlan.
EDF announced this morning that it concluded bilateral term loans yesterday for a total amount of 2.2 billion euros. ‘These facilities have a maturity of 3 years and do not include any prepayment penalty’, indicates the company whose loans were concluded with a group of six banks.
Technip Energies has won a contract with TotalEnergies for the production of sustainable aviation fuels (SAF) at the Grandpuits platform in France. Once in operation, this facility will have the capacity to produce 210,000 tonnes per year of sustainable aviation fuels.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
