The Paris Bourse begins 2022 with new highs after closing 2021 with a gain of nearly 29%, its best annual performance since 1999. Growth in manufacturing activity continued in the euro zone in December, according to the index established by IHS Markit, but at a slower pace than in November. It was confirmed at 58 points in final data last month, after 58.4 in November, but the slight easing of tensions on supplies encouraged a record increase in purchases.
The correct orientation of contracts futures on American indices is also a supporting factor. Trading volumes, however, remain symbolic with barely 450 million euros traded on the values of the flagship index due to the closure of many financial places on Monday, including the London Stock Exchange.
At 10:35 am, the Cac 40 gained 0.94% to 7,220.06 points after a new session record of 7,233.23.
In Asia, Tokyo, Sydney and Chinese places are closed on Monday. In Hong Kong, the Hang Seng index fell 0.65% on Monday after losing 14.1% last year, one of the worst performances among the major world markets. Evergrande shares were suspended from listing. The real estate developer, who did not honor the payment of coupons linked to a bond for an amount of 255 million dollars due last Thursday, remains in a delicate situation. However, he has a grace period of 30 days to honor this payment.
Less disruption to economic activity
At the time of the balance sheets and the outlook, investors want to display a certain optimism, if only on the face of it, when, if the Omicron variant is clearly more contagious than the previous strains, it is also deemed to be less dangerous, if the ‘we believe the data on hospitalizations. The risks associated with the pandemic are expected to decrease, especially as China is on the way to easing its monetary policy. Generally, ” our economists anticipate less disruption to economic activity and aim for above-trend global growth in the first quarter, particularly in Asia. Regarding the Fed’s monetary tightening, the peak of disruption for the markets is also close “, Summarize the strategists of JPMorgan based in Hong Kong in a note quoted by Bloomberg.
Inflation and central banks in the sights
Investors will keep an eye on the development of inflation and the response of central banks. Many strategists predict an increase in volatility in the face of these unknowns. The week which begins will be marked in particular by the first estimate of December inflation in the euro zone, as well as by the employment report for the same month in the United States.
Main support for the Cac 40, TotalEnergies gained 1.8% in the wake of the 1.4% increase in the barrel of Brent from the North Sea. Libya has reduced production due to ongoing repairs to facilities damaged by attacks on the country’s main fields. Opec + is due to meet on Tuesday to discuss an increase in production in February.
Saffron gains 2.3%. Its managing director, Olivier Andriès, estimates in an interview with Figaro that the worst is over for the aeronautics sector and says he is “very confident”. Airbus advance for its part of 2.4%.
Air France-KLM 4% advance and ADP 0.7% while Citi raised its recommendation on the two securities to “sell” to “neutral”.
The luxury sector is also surrounded. L’Oreal earns 2.2%, Hermes 0.8% and LVMH 0.8%.
Great (+ 0.6%), Michelin (+ 2.2%), Schneider Electric (+ 1.2%) and Pernod Ricard (+ 0.1%) started the year with new records.