The Paris Bourse gives up some fractions not knowing crossed the symbolic threshold of 7,200 points this morning for the first time in its history. The market has shrunk somewhat as US index futures hover around equilibrium in the aftermath of the S&P 500’s first pullback in five sessions. Investors continue to hope that the acceleration of Omicron variant contaminations will not have a noticeable impact on the economic recovery. Trading volumes remain low with just € 700 million traded on the Cac 40 as the end of the year approaches, despite the reopening of the London Stock Exchange after a four-day weekend .
Towards profit taking after the “Santa Rally”?
Around 2:30 p.m., the Cac 40 yields 0.24% to 7,164.18 points after a new historic peak during the session at 7,201.65. In London, the Footsie gained 0.79% thanks to a catch-up, while in Frankfurt, the Dax loses 0.56%. For its part, the Stoxx Europe 600 posted a new all-time high at 490.10 points, the previous one going back to mid-November.
Investors are tempted to take profits after a 17% increase in global financial centers this year. The pandemic, the Fed’s tightening of monetary policy and questions about the outlook for the Chinese economy amid the crisis in the real estate sector are among the main risks for 2022. Fears about the Omicron variant appear to be easing as a result less dangerous compared to previous strains, according to recent studies, especially since the probability of confinements at the global level is considered low. ” Although the contaminations at Omicron in the United States and in Europe, among others, continue to increase strongly, this is not yet reflected negatively in the economic indicators. Says Jeffrey Halley, senior market analyst at Oanda. As activity is sharply reduced on the markets during this holiday season, investors are keen to integrate prices into a slightly thwarted recovery, not a shock, he adds.
Teleperformance sets foot in the United States
Biggest increase in the Cac 40, Teleperformance increased by 2.1% and set a record. The group announced the acquisition of Senture, specializing in the outsourced management of business processes to administrations in the United States, for an enterprise value of 400 million dollars (353.5 million euros). The operation, which will be fully funded by bank debt, is expected to be positive by around 5% on earnings per share and will open up new opportunities in the United States, says Teleperformance. Gilbert Dupont raised his target price from 410 to 430 euros on the tour title while maintaining his opinion to “accumulate”.
Kering and Bouygues follow with gains of 1.1% and 0.8% respectively.
Conversely, Valneva fell 4% on profit taking after a jump of more than 200% since the start of the year.