(CercleFinance.com) – The Paris stock market rose by around 0.4% this morning, around 7105 points, taking advantage of signs giving hope for an easing of tensions in the banking sector.
The Parisian market experienced a turbulent start to the month, which led it to drop below the symbolic 7,000 point mark for a while and erase a good part of its gains recorded since the start of the year.
But the time now seems to relax and European equities, which had been largely neglected last year, remain among the best performers this year.
“In a context of improving prospects, investors have detected an opportunity in Europe given the easing of the energy crisis, relatively attractive valuations in the region and the reopening of China”, explains Antoine Lesné, head of of research and strategy at SPDR.
In Europe, the almost general rebound movement primarily benefits banking stocks, whose STOXX index gained 1.4% yesterday, bringing its annual decline to around 1%.
‘No news is good news’ remains somewhat the leitmotif of the European banking sector, but the appetite for risk is also supported by positive developments on the other side of the Atlantic, ‘underline analysts at Danske Bank.
Investor sentiment is benefiting from the takeover by US bank First Citizens of all the deposits and loans of Silicon Valley Bank (SVB), which went bankrupt earlier this month.
The rise in European equities is, however, curbed by a new episode of tension in the bond market, against a backdrop of renewed appetite for riskier assets.
On the other side of the Atlantic, the selling movement is confirmed with yields on ten-year Treasuries which rose again to reach nearly 3.53% yesterday.
Expectations of a 25 basis point rate hike from the US Federal Reserve in early May rose in the space of a weekend from 17% to 45%.
The dollar, meanwhile, continues to fall against the euro, which returns to around 1.0820 against the greenback in the wake of the robustness of the Ifo index released yesterday.
Inflation remains a major subject of concern and while awaiting new data on this front in the euro zone as in the United States by the end of the week, investors will be attentive to the publication, this afternoon of the Conference Board US Consumer Confidence Index.
In French company news, Alstom announced on Tuesday that it has won a “major contract” in Hong Kong, where it has been chosen to supply the signaling system for a railway extension project.
Valeo announces that it is the leading French patent applicant with the European Patent Office (EPO). The group filed 588 patent applications in 2022. It is 31st in the world ranking of applicants in Europe.
Finally, the French biotechnology company Nanobiotix postponed the publication of its annual results on Tuesday, explaining that it needed time to finalize its closing procedures.
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