The Paris Stock Exchange continued Friday its sharp rebound from the day before, taking 1.08% to return to nearly 6,000 points thanks to a surprising return of investors to risky assets, such as equities.
The star CAC 40 index advanced 63.30 points to 5,942.49 points around 9:30 a.m., after reaching 5,992.43 points shortly after the opening. Over the week, he gained 1.27%.
Thursday, he finished up 1.04%, after losing nearly 2% in the early afternoon, where he fell to 5,700 points.
Wall Street ended strong on Thursday, with the Dow Jones gaining nearly 3% and the S&P 500 2.60% as the broader index started the session at a two-year low, after the release of data from the US inflation higher than expected.
This trend reversal posed “a headache” for analysts, said Edward Moya, of Oanda, as it seems disconnected from the latest information on inflation. The persistence of this in the US economy portends even more tightening of the screws from the US central bank in the coming months.
This is not the first time that the indices have experienced a strong rebound in a very difficult year. The last rebound, more than 4% on October 4 in Paris, was followed by six sessions of decline. In total since January 1, the CAC 40 has fallen by almost 17%.
Among the reasons put forward for this brutal movement, the hope of having hit a low point for the year, technical thresholds, redemptions of short positions by market participants or even stronger results than expected in the United States. United, for Delta airline or the world’s leading asset manager Blackrock.
“While Thursday’s rebound was a welcome respite from the weakness in markets this week, there is no reason to believe it was anything other than a technical rebound,” said Michael Hewson. , from CMC Markets.
An agreement but not the end of the strike at TotalEnergies
The group and two majority unions seemed on Friday to agree on a wage increase in the group, but the CGT, at the origin of the work stoppage which caused a rare shortage of gasoline in France, has refused any agreement and the strike was renewed. The action rose 1.83% to 52.24 euros.
Danone largely leaves Russia
French agrifood giant Danone (+1.42%) announced on Friday that it planned to divest from its “dairy and plant-based products” unit in Russia, which constitutes the bulk of its activity in the country, eventually retaining only its infant nutrition branch.
Prospects raised for the FDJ
La Française des Jeux announced Thursday a 9% increase in stakes in the third quarter, driven by the lottery and good performance of the physical network. The group raised its targets for 2022 thanks to good prospects at the end of the year. The title took 1.41% to 30.93 euros, but remained down 20% since the beginning of the year.
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