The Paris Stock Exchange rose sharply by 2.05% on Wednesday, a rebound which comes after a plunge of more than 2.5% the day before, caused by fears of recession.
The star CAC 40 index rose from 119.18 points to 5,914.14 points, around 9:50 a.m. On Tuesday, the Parisian coast fell to its lowest closing level since the beginning of March 2021.
The Nasdaq New York closed sharply up 1.75% on Tuesday, cheap buybacks and bargain hunting fueled the rebound early in the session, according to John Plassard, investment specialist at Mirabaud.
The day’s rebound is therefore mainly technical after the sharp drop the day before, and the overall picture remains quite bleak.
European companies have to deal with the war in Ukraine, the worsening energy crisis, rising inflation and a central bank unable to give member states the right treatment, as it is caught between rising inflation and the risk triggering a new debt crisis in the euro zone, explains Ipek Ozkardeskaya, an analyst at Swissquote.
All this has fueled fears for several months that the European economy is entering recession and weighing down the markets. These concerns intensified on Tuesday with the risk of a gas supply disruption in Europe, which would hurt many parts of the economy, starting with German industry.
The Russian giant Gazprom has already drastically reduced its gas deliveries to European countries and the announcement on Tuesday of a strike in the oil and gas sector in Norway, threatening the country’s exports, has plummeted spirits.
The Norwegian government decided to interfere in the case and referred the conflict between the striking employees and their employers to an independent body, effectively imposing, according to Norwegian law, the cessation of social mobilization.
The single European currency nevertheless remained at its lowest for almost 20 years, carried away on Tuesday by the lack of confidence of investors in the European economy, while it had already been weakened for several months by the more accommodating tone of the European Central Bank , compared to the Federal Reserve in the United States.
Retirement : save by paying less tax. 11 contracts compared
Alstom chosen…
Rail constructor Alstom has announced that it has won a 387 million euro contract to supply metro trains and a signaling system for the Indian cities of Bhopal and Indore. Its action was at the top of the CAC 40 with an increase of 3.91% to 22.33 euros.
… Safran and Airbus too
Air France-KLM (+3.40% to 1.13 euros) has chosen engines from CFM International, a joint venture between Safran and General Electric, to power the 100 Airbus A320neo family aircraft ordered last December. Safran (+3.49% 95 euros) and Airbus (3.60% 92.62 euros) were just behind Alstom, at the top of the CAC 40.