Published on : 12/07/2022 – 18:52Modified : 12/07/2022 – 18:51
Paris (AFP) – The Paris Stock Exchange on Tuesday offset its losses from the previous day with a rebound of 0.80% concluding an essentially wait-and-see session, before several important indicators, and where movements took place in the bond, oil and foreign exchange markets.
The star CAC 40 index took 47.90 points to 6,044.20 points. This more than offsets the 0.61% loss recorded on Monday.
The Parisian rating had started down, before rising gradually during the session, returning to the green shortly following the opening of the American markets. But investors mostly kept in mind the publication of the consumer price index in the United States, scheduled for Wednesday, and the first salvoes of corporate results at the end of the week.
“In days of waiting like this, the European markets are linked to the American markets”, which have recovered a little from the first estimates available at the start of the session, notes Florian Allain, manager at Mandarine Gestion.
Equities might also have been supported by the fall of around 7% in oil prices at the time of the Paris close, the black gold being weighed down by the weak outlook for global demand.
Investors have on the whole abandoned risky assets in favor of financial investments perceived as safer, in particular government bonds.
Extremely volatile since the beginning of the year, the 10-year interest rate on the French loan fell by 13 basis points to 1.72%, its lowest level since the beginning of June. In mid-June, the rate had peaked at 2.38%.
“During the first five months of 2022, the markets were guided by the estimates on the evolution of the key rates of the central banks. Since May, the interest turned on the risks of recession”, with in addition for the Europe “the sword of Damocles” represented by the risk of a disruption in the supply of Russian gas, comments Mr. Allain.
These conditions, along with the US Federal Reserve’s tighter monetary policy, have caused the euro to fall dramatically once morest the dollar since the start of the year. The euro even briefly touched parity with the greenback shortly before noon, before rising and moving around $1.0062 around 6:15 p.m. (+0.26% compared to Monday’s close).
Euro-dollar parity benefits Airbus
Companies whose orders are made in dollars but whose production is mainly in Europe continued to benefit from the weakness of the euro. This is particularly the case in aeronautics, such as Airbus (+3.88% to 100.46 euros), Safran (+2.98% to 101.32 euros) or even Thalès (+2.24% to 123 ,30 euros).
Airlines also had the wind in their sails, such as Air-France-KLM (+3.98% to 1.15 euros).
Bad recipe for Bonduelle
The French specialist in canned and frozen vegetables announced on Monday that it would not reach the annual growth targets it had set. The group is weighed down by the rise in its production costs and by its fresh activities in North America.
It lost 9.63% to 13.70 euros, bringing its fall to 34.29% since January 1
© 2022 AFP
