The Paris Bourse on Wednesday auctioned a third record in as many sessions in 2022, investors favoring companies that should be favored by the reopening of the economy in the coming months.
The flagship CAC 40 index took 58.96 points, or 0.81% 7,376.37 points, a new record at the close. In session, he reached 7,384.86 points, a new high as well.
The day before, it had finished up 1.39%.
The Parisian coast opened to a level close to equilibrium before progressing at a steady pace throughout the day.
The theme for this start of the year is to raise interest rates, explains Alexandre Baradez, head of analysis at IG.
Investors have left Omicron behind, despite the explosion in the number of cases in recent weeks. They are convinced that its lower danger, according to preliminary studies, will allow governments to manage the crisis without too many restrictions on economic activity and to get out of it quickly.
As a result, attention is now on the US Federal Reserve, which will publish in the evening the report of the discussions of its last monetary policy meeting.
With soaring inflation and a job market now close to its pre-pandemic level, the Fed assured the markets at the end of 2021 that it would raise its key rates, the main tool to curb price increases.
In the bond market, US loans rose earlier in the week, with the 10-year reaching 1.68%.
There is a sectoral rotation, with growth stocks, such as technology, which start to decline, while those on the reopening of economies, such as industry, banks, tourism, the automobile, are progressing, notes M Baradez.
Tech companies need low interest rates to support their high valuation, their significant investments and their growth prospects.
The Parisian market is mainly made up of the second category, explaining its better performance than the American markets, dependent on tech gloves.
This rotation could be dominant over the next twelve months, even if not necessarily so powerful, continues the analyst.
Until the publication of the annual results of the companies, starting later in the month, there are no real dangers for the European markets, except unexpected news, for example coming from China, he explains.
The automobile roars
The automotive sector was still taking full advantage of the prospect of reopening the economy.
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In three sessions, Renault and Stellantis have thus taken 10%. On Wednesday, Renault took in 5.31% 34.00 euros and Stellantis 3.91% 18.40 euros. The equipment manufacturers Plastics Omnium (+ 2.69% 24.40 euros) and Valo (+ 2.13% 28.31 euros) have taken the aspiration.
Other stocks that took advantage of these buoyant winds: banks (Socit Gnrale + 1.02% 32.25 euros), raw materials (ArcelorMittal + 2.64% 29.70 euros, TotalEnergies + 1.20% 45.92 euros) or again shopping centers (Unibail-Rodamco-Westfield + 2.42% 66.08 euros).
New rumors about Carrefour
Auchan would return to the assault to acquire rival Carrefour with new investors, after talks failed in the fall, the financial news agency Bloomberg said. The group’s price jumped nearly 6% after the article was published and ended up 5.09% to 17.25euros.
Health and tech still in pain
Investors have again turned away from companies linked to the fight against Covid-19. The Eurofins Scientific analysis glove fell by 1.06% 100.44 euros, bioMrieux by 0.60% 116.25 euros and Sartorius Stedim by 1.74% 434.20 euros.
Tech stocks were also affected by the decline in Nasdaq Wall Street, due to the rate hike. OVHCloud lost 3.37% 25.91 euros, Capgemini 2.12% 212.60 euros and Dassault Systems 0.59% 50.53 euros.