(CercleFinance.com) – The Paris Stock Exchange ends the session with an increase of 2.3%, to 6776 points, thus signing a 3rd consecutive session of increase and marking a thunderous start to the year 2023 with +4.4% since the beginning of the year.
The Parisian index is notably driven by Alstom (+6.5%), L’Oréal (+5.2%) as well as the luxury sector with +5% for LVMH, +4.5% for Kering and +4 .2% for Hermes.
The Euro-Stoxx50 is not to be outdone with +2.3% at 3,972, driven by +6.4% from Italian Eni.
The positive sentiment is fueled by a sudden drop in oil prices of -5% on Brent, which fell from $87 on Tuesday morning to $78.3 this Wednesday at the end of the session (and WTI dropped -5% to $73.3 on the NYMEX) as Chinese industry slows further, despite giving up ‘Covid 0’.
The rise is much more timid across the Atlantic, after an already mediocre session the day before: for the time being, the Dow Jones grabs 0.3%, behind the Nasdaq (+0.6%) and the S&P500 (+0.7 %).
Note that the publication of a manufacturing ISM down from 49 to 48.4 does not motivate buyers, the US indices are struggling to take off: the ISM is at its lowest since spring 2020 (lockdowns).
However, the number of available jobs remains very high, at 10.44 million at the end of December.
This morning, investors were also able to take note of several statistics in Europe.
The composite PMI index of overall activity in France recovered slightly from 48.7 in November to 49.1, but is capping below the 50 mark, thus signaling a second monthly contraction in private sector activity.
S&P Global, which calculates the index, said activity fell in both the services sector and the manufacturing sector, although the pace of contraction was again more marked among manufacturers.
Moreover, the contraction in activity slowed down in December in the euro zone against a backdrop of easing inflationary pressures, according to the latest PMI survey carried out by S&P Global.
Its final composite PMI index measuring overall activity in the region’s private sector rose to 49.3 last month, after coming out at 47.8 in November.
On the interest rate front, bond yields confirmed their easing movement, French ten-year OATs erased -10Pts and returned to 2.805%, German Bunds fell -9Pts to 2.280%, Italian BTPs from 4.48% to 4.31% (-17pts).
In the United States, the yield of 10-year Treasuries fell by -9pts, from 3.792% to 3.702%.
On the foreign exchange market, the euro is trading against $1.0614.
In corporate news, Saint-Gobain, via its subsidiary Chryso, announces that it has finalized the acquisition of Matchem and signed an exclusive agreement to acquire IDP Chemicals, two companies positioned in the buoyant building and infrastructure segments in Brazil and Egypt.
Neoen announces that at the end of December it finalized the financing of the first 209 MW of its Goyder South Stage 1 wind farm (with a total capacity of 412 MW) located near Burra, in South Australia.
CGG and TGS announce the second phase of the 3D multi-client study of Foz do Amazonas, in the equatorial margin of Brazil, which covers 11,425 square kilometers and will provide complementary high quality data for the exploration of this area .
Airbus announces that Airbus Defense and Space has signed a contract with Poland to provide a geospatial intelligence system including the development, manufacture, launch and delivery into orbit of two high-performance optical Earth observation satellites.
Finally, Stellantis presented the new Peugeot 408, which arrived on the market at the end of 2022. With this vehicle, the brand completes its offer in the very strategic segment of the C segment.
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