The control room of Euronext, the company that manages the Paris Stock Exchange, in La Défense, November 21, 2019 (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange rose 0.35% Monday morning, reassured by China’s desire to support its economy under pressure.
At 9:25 a.m., the CAC 40 index gained 24.96 points to 7,167.96 points. The Parisian rating had fallen by 0.81% on Friday and by 0.50% on Thursday.
The session was expected to be quiet due to the closure of Wall Street for the Martin Luther King Day holiday.
China announced on Monday that it recorded a gross domestic product up 8.1% in 2021, the highest in a decade but in the fourth quarter, growth however lost steam (+4% year on year), after 4 .9% to the previous one.
The main indicator of consumption, retail sales rose last month by only 1.7% year on year, their weakest increase since the summer of 2020.
To support the economy, the Chinese central bank lowered a key interest rate on Monday for the first time since April 2020.
The measure aims to ease the pressure on small and medium-sized financial institutions to encourage them to grant more credit, on more favorable terms, to companies.
The results season “could play the role of a trigger but also an accelerator in order to get out of this market configuration without strong conviction for several sessions now”, writes Christopher Dembik, director of strategy and macroeconomics at Saxo Bank.
The launch was mixed on Friday with publications from US banks including JPMorgan and Citigroup disappointing unlike Wells Fargo.
“As for the rest, it is still inflation and monetary policy that should be the main topic of discussion in the days and weeks to come,” said Tangi Le Liboux, analyst at Aurel BGC.
The decline in sales continues at Renault
Renault announced on Monday that its sales had continued to decline in 2021, with nearly 2.7 million vehicles sold worldwide (-4.5% compared to 2020). The Renault brand sold 30% of hybrid and electric vehicles in Europe, excluding utility vehicles, compared to 17% in 2020. It is aiming for 100% electric vehicles by 2030. The manufacturer’s share rose by 2.67% to 34.44 euros around 9:13 a.m. on the Paris Stock Exchange.
Sector rotation continues
The so-called discounted values that bet on the reopening of economies including banks, the automobile, but also Thales (+ 1.51%), Sanofi (+ 1.64%) or Carrefour (+ 1.19%) continued to be favored to the detriment of certain growth and technological stocks such as Worldline (-1.16%), Capgemini (-0.45%) or Teleperformance (-0.39%).
© 2022 AFP
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