The Paris Bourse ended sharply up 1.75% on Monday, relieved by the resumption of negotiations on Ukraine and the drop in oil prices, but the respite remains fragile.
The star CAC 40 index rose from 109.69 points to 6,369.94 points. Friday, he had concluded a week agitated on an increase of 0.85%.
The Parisian side opened in the positive and quickly increased its gains, even passing the 2% mark at the end of the morning, then again after the opening of the American markets.
The market remains complicated to read and anticipate due to geopolitical hazards, explains Frdric Rozier, portfolio manager at Mirabaud.
On Monday, the resumption of talks raised hopes and therefore a rebound in the indices, but the movement remains fragile, he believes.
The fourth round of talks between Ukraine and Russia will resume on Tuesday, a Kiev negotiator reported.
Stocks which had suffered particularly since the beginning of the war, such as Alstom (+5.20% to 20.83 euros), Engie (+3.23% to 11.43 euros), or even the banks on the CAC 40 index notably profit from this lan.
Conversely, Thals (-2.14% to 109.65 euros), TotalEnergies (+0.35% to 45.75 euros) or ArcelorMittal (+0.47% to 27.82 euros), more resilient since the beginning of the month, have remained the train.
It’s a small sector rotation. The rebound can also be an opportunity to reduce its investments, continues Mr. Rozier.
This relaxation was also seen on the raw materials market, with drops of more than 7% in the price of barrels of oil.
On the ground, military operations continue, with Russian shelling of Kiev and Kharkiv while pro-Russian separatists in Donetsk have accused Ukraine of carrying out a strike on the city.
The Russian army does not exclude the possibility of taking total control of the large cities which are already surrounded, warned the Kremlin spokesman.
Banks take advantage of rising interest rates
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Bank stocks benefited from the rise in rates on the bond market. The rate on the French ten-year loan rose to 0.84%, against 0.74% on Friday at the close.
Rates rose on the eve of the start of the meeting of the Fed’s monetary policy committee. The institution should raise its rates – lowered to their lowest in March 2020 – in order to combat inflation at its highest in forty years.
Socit Generale rose by 3.92% to 23.08 euros, BNP Paribas by 4.04% to 51.01 euros, and Credit Agricole by 0.96% to 10.06 euros.
EDF anticipates a dip in its results for 2022
The title lost 0.09% 8.72 euros. The electricity producer, which has lost more than 15% since January 1, announced on Monday that it is revising its forecast for gross operating surplus (Ebitda) for the year 2022 significantly downwards, due to corrosion problems. its nuclear fleet and the volume of electricity that the state forces it to sell at low prices.