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Paris (AFP) – The Paris Stock Exchange returned to the 6,000 point threshold on Monday, rising 1.83% over the session, reassured by positive corporate results and the drastic budgetary shift in the United Kingdom.
The CAC 40 rose 108.74 points to 6,040.66 points, following starting the day on a timid rise before the opening of Wall Street gave a boost to the Parisian rating. Friday, the Parisian place had gained 0.90%, signing an increase of 1.11% over the week.
The jump of the day is explained by two factors according to Philippe Cohen, portfolio manager at Kiplink Finance, on the one hand “the British budgetary problem with the new Ministry of Finance which canceled all the tax cuts” announced by its predecessor .
“This reassured the markets and allowed an easing of the British rates and a rise of the pound”, notes Mr. Cohen.
And on the other hand, “the market focuses on corporate results and the first publications are rather good, especially in the banking sector”, he continues.
Bank of America reported higher-than-expected quarterly revenue in the third quarter, and remains profitable despite an increase in provisions aimed at protecting once morest a deterioration in the economic situation.
Another element likely to help the morale of European investors, the price of European gas fell to its lowest since June (130.90 euros per megawatt hour (MWh) around 2:10 p.m. GMT), while the European Union is stepping up its efforts to offset Russian deliveries, with several countries reporting larger than expected supplies ahead of winter.
“Today inflation in Europe is mainly linked to energy, so a drop in gas and oil prices should lead to a deceleration in inflation”, which reassures the markets, underlines Mr. Cohen.
The car in shape
The equipment manufacturer Faurecia (+5.20% to 12.85 euros) will supply Hyvia, a joint venture between Renault and Plug, with hydrogen storage systems which will be used in Renault Master H2-Tech models, according to a press release.
As for Stellantis, the action took 2.53% to 12.81 euros. General manager Carlos Tavares announced that the group would produce “shortly” 12 models of electric vehicles in France, once morest six currently.
Renault also gained 3.90% and Valeo 1.97%.
Orpea benefits from the relaxation on rates
The action of the group of private nursing homes Orpea jumped 10.50% to 11.84 euros, the largest increase in the SBF 120, taking advantage of the fall in bond rates while the company has a large debt on its account. .
The Franco-Austrian laboratory Valneva (+6.46% to 6.69 euros), which recently raised more than 100 million euros, also seems to have benefited from this trend on the bond market.
© 2022 AFP
