Exit yesterday’s air pocket, the Paris Stock Exchange resumed its progression on Tuesday. The announcement of an easing of quarantine measures related to Covid 19 in China counteracts fears about growth. The market nevertheless keeps an eye on the annual ECB forum in Sintra, Portugal.
Mid-session, the Bedroom 40 increased by 1.09% to 6,113.345 points in a limited business volume of 710 million euros. The contracts futures on US indices gain between 0.4% and 0.5%.
As the European Central Bank prepares for its first monetary tightening in more than 10 years, it has reaffirmed its intention to raise its key rates by 25 basis points in July, and that a larger hike could come in September if necessary. She also indicated that the new bond purchase program being drawn up will ensure that yield spreads within the euro zone do not widen excessively. Christine Lagarde and Jerome Powell will speak tomorrow, from Sintra.
Luxury driven by China
The Chinese central bank meanwhile reaffirmed its accommodative policy, while the authorities announced a reduction in the duration of quarantines for foreigners from 21 to 10 days, which supports the luxury sector. The latter benefits more precisely from the absence of new Covid 19 contaminations in Beijing in the past 24 hours, a first since February. LVMH takes 1.4%, Kering 1.3% and Hermes 1.3%.
The barrel of Brent from the North Sea is up 2.1% to 117.18 dollars as the G7 member countries have said they are ready to consider measures aimed at capping the price of Russian oil. TotalEnergies thus gained 2.7%.
On the macroeconomic level, two American indicators will lead the afternoon: the Conference Board’s consumer confidence index for the month of June and the S&P Case-Shiller real estate prices in 20 cities.
The automotive sector once again surrounded
Biggest rise in SRD, Aramis Group increased by 8.2%. The group has announced the takeover of Onlinecars, an Austrian specialist in the sale of used vehicles. The operation was financed by the increase in lines of credit made available to it by Stellantiswhich gains 2.4%.
Renault earns 5%. The group and software publisher Atos have announced the launch of a unique service intended to collect and analyze data as part of a ” strategic collaboration “. This partnership will allow Renault to reduce its costs by around 200 million euros per year, the carmaker announced.
Valeo rises 2.9%. The equipment manufacturer has indicated that it will supply BMW with components for the German manufacturer’s advanced driver assistance systems. Its competitor Faurecia advance of 4.9%.