(CercleFinance.com) – Another 0.5% gain by 5:35 p.m. and the Paris stock market will have erased the -4% from Monday’s session: after 0.75% the day before, the CAC40 adds +2.7% towards 7,020pts (with 100% of title up, and Renault which is the rocket with +7%), in relatively modest volumes since still less than 2 billion euros.
What is the engine of this euphoria when investors still wanted to be cautious the day before, waiting for announcements from the Fed after two days of meetings.
If the strategic committee should – for the moment – leave its interest rates unchanged, investors expected Jerome Powell to provide valuable indications on the next trajectory of rate hikes.
But given the -14% correction suffered by the Nasdaq, the boss of the FED could be more evasive than precise on the intensity and timing of the response against US inflation… just to relax the atmosphere.
The other big unknown was obviously the tense geopolitical situation in Ukraine, with investors still fearing the scenario of an attack by Russia.
A scenario that Moscow dismisses, reaffirming that there was no preparation for an invasion of eastern Ukraine (Donbass).
A denial that the managers hasten to take on board: ‘At this stage, a large-scale invasion of Ukrainian territory seems unlikely to us’, judge Frédéric Rollin, investment strategy advisor at Pictet Asset Management.
‘The costs and consequences of such an operation are dissuasive’, specifies the analyst. ‘On the other hand, we could see Russian forces officially entering the Donbass,’ he warns.
As for the American indicators, the day looks relatively calm on Wednesday, with a first minor figure: wholesale inventories increased by 2.1% in November against +1.3% expected, after 1.7% in October.
It remains to take note of the sales of new homes this afternoon.
In the meantime, the flattest calm reigns on the bond markets with T-Bonds at a standstill in the 1.78% zone (the yield is frozen beyond the peaks of the end of March 2021), our OATs and the Bunds degrading by about 1Pt.
Several economic heavyweights will present their quarterly results during the day, such as AT&T, Boeing, Intel and Tesla.
In the news for French companies, the auto sector (Renault and Stellantis at +4.5%) and their suppliers like ArcelorMittal (+5%) are on the rise.
Arcelor announced last night an investment of five million dollars in H2Pro, an Israeli start-up behind a process to produce clean hydrogen.
Arkema is revising its production capacity in fluoropolymers (PVDF) upwards. The chemist now indicates that it plans to increase its capacity by 50% at its site in Changshu (China), against 35% so far, for a start date still scheduled for the end of 2022.
Finally, Valneva (+8.5%) announces the start of booster vaccinations with its inactivated vaccine candidate against Covid-19 in adult participants of its pivotal phase 3 trial, Cov-Compare, in order to complete the previous positive data. on the reminders generated during phase 1/2.
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