With the first close in its history above 7,200 points, the Paris Stock Exchange continues its momentum in the first exchanges. Investors have incorporated the fact that they will have to contend with the Omicron variant of the coronavirus, as well as the prospect of a tightening of monetary policy by the big central banks.
At 9:35 am, the Cac 40 0.79% to 7,274.21 points after a new historic peak at 7,275.11 points.
On Wall Street, the Dow Jones and S&P 500 closed on new highs on Monday. Apple became the first U.S. company to hit the $ 3 trillion market capitalization mark. However, the stock finished below that threshold, while Tesla’s market capitalization strengthened by $ 144 billion on the back of a record fourth quarter deliveries.
Rebound in manufacturing activity in China
In Asia, the Nikkei 225 ended with a gain of 1.8% on Tuesday, supported primarily by the fall in the yen against the dollar as the yield on the 10-year US bond broke the 1 mark, 6%. The Chinese CSI 300 lost 0.5% on profit taking despite the return to growth in manufacturing activity in the country. The index established by Caixin-Markit stood at 50.9 points in December, after 49.9 in November, its best level since June. A figure above 50 indicates an extension of the activity.
Operators anticipate increased volatility in an environment that remains marked by tensions on supply chains, risks associated with Omicron and inflation that appears to be persistent. The market will monitor tomorrow the “minutes” of the last monetary policy committee of the Fed, then Friday the first estimate of December inflation in the euro zone, as well as the employment report for the same month in the United States.
In the meantime, the main meeting of this Tuesday lies in the meeting of OPEC + which will have to decide on an increase in its production. The expanded cartel is expected to stick to an increase of 400,000 barrels per day in February. Also to be watched is the ISM manufacturing activity index in the United States in December.
Oil and gas companies surrounded
The heavyweights of the rating continue to pull the market. LVMH thus takes 1.3%, while TotalEnergies takes 0.8%. The energy sector is also surrounded before the OPEC + decision. CGG, for example, advances by 5.9% and TechnipFMC 1.5%.
Pernod Ricard rises by 1.3%. Deutsche Bank has raised its target price from 237 to 245 euros by maintaining its “buy” opinion.
Among other analyst ratings, Barclays raised its price target on ADP (+ 1.4%) from 91 to 98 euros, while JPMorgan has downgraded Ipsen (-1.7%) from “overweighting” to “neutral” and reducing its price target from 100 to 80 euros.