The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed up 1.59% after starting the week on the right foot, motivated by lower interest rates, before a busy agenda in corporate results.
The star CAC 40 index took 95.97 points to 6,131.36 points. On Friday, it had lost 0.85%, which had not prevented it from progressing by 1.47% over the week and on a third consecutive weekly gain.
“We are at the junction of two things”, explains Alexandre Baradez, analyst for IG France.
On the one hand, there is “the positive momentum at the end of last week with speeches by officials of the American Central Bank” (Fed) suggesting that the institution “will not go too far on a hardening” of its monetary policy, after a year in which it sharply increased its main key rate, he continues.
Eyes will also be on the ECB this week, which is expected to raise interest rates again, “but the ECB sees the economy slowing down so the market is thinking that it will raise its key rates in a more nuanced way”, explains Mr Baradez.
But the enthusiasm was tempered by a “current from Asia”, after the Communist Party Congress which turned out to be “very political with little economic orientation” and at the end of which Xi Jinping strengthened his hand put, according to Mr. Baradez.
The cost of borrowing in France eased after peaking at 3.09% on Friday, falling to 2.85% on Monday.
Finally, a shower of results is expected this week. On Tuesday, publications from Air Liquide, Orange, Vinci, Worldline, Michelin and Rémy Cointreau are particularly expected.
suspended Orpea
The quotation of the action of Orpea was suspended all the meeting Monday, due to a rare request of the Authority of the financial markets.
“In order to ensure that the market is properly informed and pending the publication of a press release from the issuer pursuant to the European regulation on market abuse, the Autorité des marchés financiers requested, this morning before the opening of the market, the suspension of financial instruments (shares, debt securities and related instruments) of the company Orpea”.
The action of Orpea is therefore blocked at its closing price on Friday, at 14.74 euros per share, a loss of 83% since the beginning of the year. Last week, the stock price soared by 37%, without any news or major announcement being able to explain it.
Luxury at the back of the pack
Luxury stocks, particularly exposed to China, were affected by fears of a tougher policy in the country after the reappointment of President Xi, whose authority seems more than ever reinforced. The Hong Kong Stock Exchange even fell by more than 6%.
These titles end up among the worst performers of the CAC 40 on Monday.
Hermès fell 0.92% to 1,292 euros, LVMH took 0.70% to 635.90 euros and Kering 0.51% to 456.40 euros.
© 2022 AFP
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