The Paris Stock Exchange and the banks are moving forward

The Paris Stock Exchange recovered on Monday after its difficult session on Friday, approaching 7,100 points thanks to the relief of investors on the banking crisis.

The star CAC 40 index advanced from 63.17 points to 7,078.27 points. Friday, the main index of the Parisian place had yielded 1.74%, reducing by more than half its weekly rebound at the start of the week.

There is not much visibility on the crisis in which the world banking sector has been caught up for nearly three weeks, recalls Andrea Tueni, analyst at Saxo bank.

But the latest news has been more reassuring from the point of view of investors, with the takeover of all of the deposits and loans of Silicon Valley Bank (SVB), which went bankrupt in early March, by the American bank First Citizens.

While the pressure had risen sharply on Deutsche Bank on Friday, no news came to relaunch it over the weekend and the tension on this title, and on the entire European banking sector, has diminished.

The president of the French Banking Federation (FBF), Philippe Brassac, assured AFP on Monday that the notion of a banking crisis was irrational. Any comparison with the 2008 crisis is improper, according to him, because there is no transmission between the banks’ balance sheets.

But the market remains nervous, with always the fear of unanticipated bad news that could emerge tomorrow, underlines Mr. Tueni.

A sign that investors have returned to more risky financial investments, State borrowings have been abandoned and interest rates have therefore risen: the interest rate for the French 10-year loan has risen to 2.74%, against 2.65% on Friday at the close.

Banks on the rebound

Bank stocks rebounded on Monday, although their price remained volatile and changed direction several times during the session. BNP Paribas gained 2.62% to 51.79 euros, Credit Agricole 0.90% to 10.03 euros, Socit Generale 0.31% to 19.96 euros.

New coin bet at Casino

After having experienced another nightmarish week on the stock market after the degradation of its rating by the rating agency Moody’s and the difficulties of the parent company Rallye, the Casino distribution group resumed 6.13% to 5.97 euros.

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