The Paris Stock Exchange rebounded after closing at a two-month low the day before. The trend is supported by bargain buying following the worst sell-off observed in global financial markets since the start of the pandemic in 2020. The market is also taking note of the surprise improvement in the ZEW index German investor confidence, which nevertheless remains in negative territory at -34.3 points in May, against -43.5 expected and -41 in April.
All the European Stoxx 600 sectors are circled except for the health sector, which is considered defensive. Investors are nonetheless skeptical about the tightening of monetary policies to curb inflation at a time when the global economy is showing signs of slowing down.
Shortly after 11 a.m., the Bedroom 40 gained 1.29% to 6,164.45 points in a business volume of 800 million euros. The contracts future on American indices gained between 0.7% and 1.4% the day after the first closing of the S&P 500 below the 4,000 point mark since March 31, 2021.
Questions about how high the Fed intends to raise interest rates continue to weaken the bond market, while the lack of a foreseeable outcome in the conflict in Ukraine and the slowdown in Chinese foreign trade cloud the outlook for the economy world. Especially since Beijing does not seem to be considering abandoning its “zero-Covid” policy, which is paralyzing many Chinese cities and businesses.
On the commodities front, the barrel of Brent from the North Sea recovered 1.7% after falling more than 6% on Monday as the consensus within the European Union around an oil embargo seems crack.
Euroapi and the automobile driven by analysts,
Biggest rise in SRD, trigano won 9.1%. The mobile home manufacturer published a net profit up to 141.3 million euros in the first half of its staggered fiscal year, against 114.1 million a year earlier. However, the group anticipates a slowdown in its activity in the third quarter due to the lack of components.
Euroapi (+4.7%) is again sought after, brokers recommending the purchase of the title of the specialist in active pharmaceutical ingredients. Deutsche Bank, which highlights the group’s leading position in a structurally growing market, has started monitoring the “purchase” value to target 20 euros. Exane BNP Paribas and Oddo BHF have also initiated coverage of the “outperforming” share.
Stellantis wins 2.6% while Berenberg has initiated the coverage of the title to “purchase”. The broker has also adopted a “positive bias” on six other manufacturers. Apart from Stellantis, it is “purchase” on BMW and General Motors, and “keep” on Renault, Ford, Volkswagen and Tesla. The equipment manufacturers follow, Faurecia wins 3.1% and Vhello 2.9%.
Airbus appreciated by 2.6%. The aircraft manufacturer announced that it had received 98 new orders and delivered 48 aircraft in April. Societe Generale raised its recommendation on the stock from “hold” to “buy” and raised its target price from 126 to 132 euros.