The Paris Stock Exchange regains 7,000 points after the takeover of Credit Suisse


The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)

The Paris Stock Exchange ended up 1.27% on Monday, finally relieved by the solution found to buy Credit Suisse, in great difficulty, and thus avoid a bankruptcy which would have weakened the global banking system.

The star CAC 40 index recovered 87.74 points to 7,013.14 points. It had experienced its worst weekly performance in six months last week, with losses of more than 4%.

In sharp decline in the first exchanges, the Parisian dimension turned around, like the banks which ended up increasing for Crédit Agricole (+0.66% to 10.06 euros) and BNP Paribas (+1.70 % to 52.56 euros), and down slightly for Societe Generale (-0.83% to 21.03 euros).

Investors were initially nervous with the conditions of the Sunday takeover of Credit Suisse by its former rival UBS, for just over three billion euros and huge guarantees granted by the government and the Swiss central bank.

“We are in a situation of crisis of confidence. This is where a central bank plays a major role”, to ensure the stability of the banking system, in particular via “supplies of liquidity”, explains Catherine Hugel, manager at Hugau Gestion.

Supra-national and individual European authorities on Monday reiterated confident messages about the soundness of the banking system.

Eurozone banks have “very limited” exposure to Credit Suisse, especially when it comes to the billions in bonds evaporated after the takeover by UBS, European Central Bank (ECB) President Christine Lagarde said on Monday.

French Economy Minister Bruno Le Maire hailed a “good agreement”, saying the government remained attentive to its consequences on the markets.

The takeover of Credit Suisse could “have legal consequences, because the bondholders were treated less well than the shareholders. This situation caused a kind of panic on the European stock exchanges in the morning”, notes Konstantin Oldenburger, analyst for CMC Market.

“The European Central Bank, however, was able to reassure investors a little by saying that it would never happen this way in the euro zone,” he said.

On the debt market, the yield on the French 10-year bond, which is a benchmark, ended stable around 2.65% after falling sharply at the start of the session.

Tuesday begins the meeting of the monetary policy committee of the US Federal Reserve. Investors wonder how the institution will manage to find the balance between the fight against persistent inflationary pressures and the imperative to maintain the stability of the banking system and the markets.

Luxury and defensives support the odds

Defensive securities, whose activity is not very sensitive to economic activity and which are sought after by investors in times of uncertainty, have increased significantly, such as Air Liquide (+2.21% to 150.48 euros) and Remy Cointreau (+2.00% to 168.40 euros).

The flagship values ​​of the Paris Stock Exchange, in the luxury sector, ended clearly in the green like Hermès (+ 1.73% to 1,760.00 euros), LVMH (+ 2.18% to 804, 50 euros) and Kering (+ 1.63% to 556.00 euros). In cosmetics, L’Oréal took 1.76% to 386.95 euros.

© 2023 AFP

Did you like this article ? Share it with your friends with the buttons below.


Twitter


Facebook


LinkedIn


E-mail





Source link -85