The Paris Stock Exchange is recovering following reports that the European Union is considering a joint bond sale to counter the negative impact of the war in Ukraine and finance energy and defense investments . The show could be announced next week, Bloomberg reports citing officials with knowledge of the project. The European Union announced last year a recovery plan of 1.800 billion euros intended to finance post-pandemic recovery.
Mid-session, the Bedroom 40 rose by 1.14% to 6,050.70 points in a business volume of 2.15 billion euros. In Frankfurt, the Dax takes 0.60% and in Milan, the FTSE Eb rises 2.28%. The contracts future on US indices gained around 0.3%.
Banks pull the market
Bank stocks are logically in demand, with the associated Stoxx 600 signing the best sector performance in Europe with a gain of 3.2%. In Paris, BNP Paribas recovers 5.4% and Societe Generale 7.6% while yield differences (spread) are decreasing, especially between Germany and Italy. That of the 10-year US bond tightened by 7 basis points to 1.8404% and that of the German Bund of the same maturity returned to positive territory at 0.0780%.
The large industrialists are also recovering, such asAlstom (+6.3%), Saint Gobain (3.5%) and Stellantis (3%). Other weight support for the Cac 40, TotalEnergies wins 1.5%. Tarkett rebounded for its part by 7.7%.
Albioma jumped 12.6%. The American private equity fund KKR is considering a takeover of the renewable energy group specializing in biomass, Bloomberg reports, citing sources familiar with the matter.
against the trend, Hermes down 3.4%. Bernstein lowered his price target on the luxury saddler from 1,363 to 1,180 euros while maintaining his opinion at “online performance”.
New records for nickel and wheat
Market sentiment remains fragile, however, with the commodity boom continuing to fuel fears over inflation, which has already reached record levels in Western countries. And the prospect of an embargo on Russian oil imports is not reassuring.
If the Europeans are more than reserved, the Biden administration seems determined to move forward on this point, even without its allies, reports Reuters, citing sources familiar with the matter. Russia has warned against such a move, which it says would exacerbate soaring oil prices and lead to the closure of the main gas pipeline to Germany, Nord Stream 1.
For the time being, the barrel of Brent from the North Sea is holding above 127 dollars, after a high of nearly 14 years at 139.13 reached on Monday. Among the other firsts, nickel crossed the 100,000 dollar mark per ton, an increase of 250% in two days. Trading in this metal has been suspended for the day on the London Metal Exchange (LME). Gold is closing in on its side of an 18-year high and wheat hit a record high last night in Chicago as the conflict in Ukraine shows no signs of easing.
The intensification of sanctions against Russia, one of the main exporters of raw materials, darkens the economic outlook and increases the risks of stagflation, thus putting central banks in a delicate situation. Tightening monetary policy to counter inflation without compromising growth is a real challenge. ” It’s all about slowing growth and rising inflation “Summarizes Alifia Doriwala, co-head of investments at Rock Creek, on Bloomberg TV. ” With the intensification of sanctions against Russia, all sectors are affected. And some central banks will act in an environment of uncertain economic growth “, she adds.