The Paris Stock Exchange is moving up Tuesday in the first trade, taking advantage of the momentum of the Chinese markets and before the publication of important indicators on employment and inflation for the rest of the week.
Around 9:30 a.m., the CAC 40 star index rose by 42.30 points to 7,367.07 points, a level more seen in session since August 14. On Monday, he had taken 1.32%.
“After a Jackson Hole with no major surprises, except for the affirmation (or confirmation) of the theme higher for longer (higher key interest rates for longer, editor’s note), the markets have chosen a return to calm,” say analysts at Natixis Research.
August was tumultuous for equities, which fell over the month everywhere in the world, even if France resisted better (-1.88%).
“It is above all the stabilization, even the slight easing of the bond that allows shares to start the week in the green”, continue the analysts.
After having regularly exceeded 3.20% during the month, the interest rate on the French 10-year loan, the reference maturity, is around 3.06% on Tuesday.
The CAC 40 is benefiting from the momentum in the Chinese markets, which have risen sharply since Monday with the authorities’ new economic support measures, including a reduction in the tax on financial transactions.
But the big events of the week are yet to come with employment in the United States and inflation in Europe.
The highlight will be Friday with the monthly US employment report, but signals are given from Tuesday, with an indicator on vacancies, then Wednesday with the ADP report for the private sector.
In Europe, August inflation data, crucial ahead of the European Central Bank (ECB) meeting in mid-September, will be released on Wednesday and Thursday.
In the United States, the PCE price indicator, the US central bank’s (Fed) preferred barometer of inflation, is also expected on Thursday.
It is therefore “a week of all dangers” for the indices, according to John Plassard, investment specialist at Mirabaud.
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Before the opening of the session, investors also learned that household morale in France had remained stable in August, although they were less optimistic about the future situation and the evolution of unemployment, according to INSEE. .
Real estate is growing
Values linked to real estate, which suffered heavy losses overall in 2023 in the context of rising interest rates, were ahead on Tuesday: Covivio climbed 2.19% to 43.82 euros, Icaed by 2.22% to 33.96 euros, Nexity by 1.50% to 14.84 euros.
Real estate also participated in the celebration, with +2.40% to 24.29 euros for Klépierre and +1.19% to 48.37 euros for Unibail-Rodamco-Westfield.
Advance on TIM
The Italian government gave the green light on Monday evening to the entry of the State into the capital of the fixed network of Telecom Italia (TIM), of which the French media giant Vivendi is the largest shareholder with 23.75% of the shares, for a joint takeover bid with US investment fund KKR. Vivendi gained 1.19% to 8.32 euros.