The Paris Stock Exchange ended up sharply by 1.17% on Monday, after a session placed under the sign of caution but reinvigorated in the last exchanges by a jump in banking stocks.
The CAC 40 index gained 73.50 points to 6,358.74 points. On Friday, the Parisian coast had rebounded slightly from 0.20%, but posted a negative balance of 1.22% over the week.
Monday, the stock market had started the session in the green, before falling back below its levels of the day before, in the morning, then stabilizing. The CAC 40 finally rose in the last hour of trading, driven by banks taking advantage of the tougher stance of the European Central Bank (ECB).
Daniel Larrouturou, equity manager at Dm Finance notes an irregular meeting, which shows the indecision of investors.
Uncertainties regarding the evolution of global growth and inflation continue to complicate the course of action for investors.
To stem the spiral of rising prices, ECB President Christine Lagarde announced that the first rate hike should be decided in July and that the era of negative rates should end by the end of the third quarter.
The declaration caused the euro to jump by more than 1% against the dollar and strengthened banking stocks, without upsetting the equity or bond markets too much.
The firm tone of the ECB was relatively expected and in line with the latest statements, so it is more of a confirmation than a surprise for the markets, believes Daniel Larrouturou.
The CAC 40 index was also helped by statements from Biden, who indicated that he could remove certain taxes on Chinese imports in order to relieve some inflationary pressures in the United States, underlines Mr. Larrouturou.
During a visit to Japan, the American president also judged that a recession could be avoided in the United States, despite the high inflation that the country is currently experiencing and which is pushing the American Federal Reserve (Fed) to tighten its monetary policy so as to more aggressive.
This week, investors will focus on the minutes of the last meeting of the monetary policy committee of the US central bank to determine whether or not to expect a further tightening of monetary conditions.
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Leading banks
Christine Lagarde’s rate announcements strengthen the euro and the banks, according to Konstantin Oldenburger, an analyst at CMC Markets.
Socit Gnrale (+4.25% to 25.54 euros), BNP Paribas (+4.16% to 52.12 euros) and Crdit Agricole (+3.75% to 10.78 euros) all three finished in the Top 5 of the highest increases in the CAC 40.
Vinci backs down, a subsidiary is targeted for private corruption
Vinci lost 1.21% 89.86 euros. Its subsidiary Vinci Construction France was indicted in February for private corruption, the Nanterre prosecution said on Friday.