The Paris Stock Exchange is at the top as Wall Street stabilizes the day after the new closing record of the S&P 500. The “Santa Rally” seems to be underway, but activity remains limited to three days from the end of the year.

The Paris Bourse somewhat reduced its lead after posting a new all-time high during the session while Wall Street was hesitant in the first exchanges after the 69e S&P 500 closing record this year. The explosion of contamination with the Omicron variant did not hinder the “Santa Rally” (end of year rally) which seemed to be compromised at the beginning of December. While the new strain is highly transmissible and can escape certain antibodies, it may also boost immunity against the Delta variant and reduce the risk of severe infection, according to a study published by two doctors at the Africa Health Research Institute, based in South Africa.

Trading volumes remain limited with barely 850 million euros traded on Cac 40 stocks. The weakness of the activity is also reinforced by the absence of British players while the London Stock Exchange is closed for Boxing Day.

Three days of telecommuting

Shortly before 4 p.m. on Cac 40 gained 0.49% to 7,175.13 points after an all-time high at 7,187.76. The previous all-time high was reached on November 19 at 7,183.08. The index is currently gaining 29.2% in 2021, which would be its best annual performance since 1999 (+ 51.1%). In New York, the Dow jones takes 0.34% and the Nasdaq Composite is stable.

Global financial centers seem to be resisting the emergence of the Omicron variant of the coronavirus, which appeared at the end of November in South Africa, and the change of course of the main central banks towards a tightening of their monetary policy in an attempt to curb inflation. France and the United Kingdom have refrained from imposing a curfew or confinement for the end of the year celebrations by favoring vaccination. Paris has notably lowered the deadline for the vaccine booster to three months and imposed three days of teleworking and by recommending a fourth day from January 3. The collective catering group Sodexo bears the cost of this ad by folding 1.7%. Its competitor Elior loses 0.3% after losing up to 1.5%.

Oil services in the spotlight

The oil services group CGG 2.9% advance in the wake of rising crude prices, the highest for a month. The market continues to bet that demand will offset disruptions from the Omicron wave. Vallourec wins 3.9%, Technip Energies 2.3% and TotalEnergies 0.9%.

Biggest increase in the Cac 40, Veolia Environment 2.2% advance after hitting a new one-year high of 32.55 euros. The action is now showing an increase of 68% since January.

Among other defensive values, Eurofins Scientific takes 0.5% and Sanofi 0.6%.

Note also the record of Teleperformance (+ 1.1%), as well as those of Michelin (+ 0.4%), Great (+ 0.7%) and Schneider Electric (+ 0.3%).

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