The Paris Bourse ends up 0.75%

The control room of Euronext, a company that manages the Paris Stock Exchange (AFP / Archives / ERIC PIERMONT)

The Paris Bourse ended up 0.75% on Wednesday, leaving aside fears of an excessively penalizing tightening of monetary policy while US inflation came out in line with expectations.

The flagship CAC 40 index rose 53.81 points to 7,237.19 points. The day before, he had gained 0.95%.

The Parisian odds opened sharply upwards, and after an air gap in the first exchanges, was permanently registered in the green. It kept its gains after the December inflation figure in the United States, the most anticipated indicator by the markets this week.

The rise in prices has accelerated for several months in Western economies, forcing central banks to tighten the screw in the hope of containing it.

Consumer prices in the United States climbed 7% in 2021 according to the Consumer Price Index (CPI) published by the Department of Labor, the largest year-over-year increase since June 1982.

However, the figures were in line with market expectations, “there was no surprise effect”, explains Andrea Tuéni, Saxo Bank analyst.

The previous week, investors had worried about the possibility of a more restrictive monetary policy of the US Federal Reserve (Fed) after the publication of the discussions of the last monetary committee. Tuesday, the president of the institution Jerome Powell “had already reassured the markets”, during his hearing in the US Senate, notes Mr. Tuéni.

He said in particular that raising rates should not have a negative impact on the job market as the economy “recovers incredibly quickly” from the crisis caused by the pandemic.

US 10-year bond yields, which climbed to 1.80% Monday, a two-year high, stabilized at 1.72%. European and French rates at the same maturity also eased.

In the end, “the market has once again shown resilience. It is a pattern similar to that observed several times last year, the downward phase was quickly compensated for,” observes the analyst.

According to him, the next meetings will be more microeconomic, with the annual results of companies. American banks get the ball rolling on Friday and publications will follow one another until February.

ArcelorMittal at its highest for 10 years

ArcelorMittal shares traded at 33.02 euros during the session, its highest level in 10 years. It closed up 6.50% to 32.59 euros, driven by the tension on the commodity markets, especially steel. Eramet also jumped 6.72% to 81.75 euros.

TotalEnergies also took 3.07% to 49.06 euros, boosted by the rise in the price of barrels of oil (+ 3.5% in three days for Brent in London), which are approaching their high of 2021, affected at the end of October.

TF1 and M6 hand in hand

The two television channels, which are negotiating for a merger, experienced similar progress (+ 2.01% to 18.24 euros for M6 and + 2.14% to 9.08 euros for TF1) while a new President has been confirmed for the Competition Authority, which will have to approve the project.

“It” is an operation which does not go without saying, when one looks at the potential market shares of the new group, in particular on the advertising market. But there are other considerations to be taken into account, which can only come out of market tests “, estimated the new president Benoît Coeuré.

© 2022 AFP

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