The control room of Euronext, a company that manages the Paris Stock Exchange, in La Défense, November 21, 2019 (AFP / Archives / ERIC PIERMONT)
The Paris Bourse on Wednesday set 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% to 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 odds opened at a level close to equilibrium before advancing at a steady pace throughout the day.
“The theme of this beginning of the year is the rise in interest rates”, explains Alexandre Baradez, chief analysis officer 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 initial 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 the report of the discussions of its last monetary policy meeting in the evening.
With galloping 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 increase its key rates, the main tool to curb price increases.
In the bond market, US bonds climbed earlier in the week, with the 10-year hitting 1.68%.
“There is a sectoral rotation, with growth stocks, like technology, which go down, while those on the reopening of economies, like industry, banks, tourism, the automobile, progress” , notes Mr. 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 the tech giants.
The automobile roars
The automotive sector was still taking full advantage of the prospect of reopening the economy.
In three sessions, Renault and Stellantis thus gained 10%. On Wednesday, Renault gained 5.31% to 34.00 euros and Stellantis 3.91% to 18.40 euros.
The OEMs Plastics Omnium (+ 2.69% to 24.40 euros) and Valeo (+ 2.13% to 28.31 euros) have taken the aspiration.
Other stocks that benefited from these buoyant winds: banks (Société Générale + 1.02% to 32.25 euros), commodities (ArcelorMittal + 2.64% to 29.70 euros, TotalEnergies + 1.20% to 45.92 euros) or even shopping centers (Unibail-Rodamco-Westfield + 2.42% to 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, said financial news agency Bloomberg. The group’s price jumped nearly 6% after the publication of the article and ended up 5.09% to 17.25 euros.
Health and tech still in pain
Investors have turned away from companies linked to the fight against Covid-19. Analysis giant Eurofins Scientific fell 1.06% to 100.44 euros, bioMérieux 0.60% to 116.25 euros and Sartorius Stedim 1.74% to 434.20 euros.
© 2022 AFP
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