2023-10-10 07:39:00
The Paris Stock Exchange is up sharply by 1.20% in early trading on Tuesday, building on the momentum of Wall Street the day before and with the drop in government interest rates.
The flagship CAC 40 index advanced by 84.21 points to 7,105.61 points around 9:25 a.m. On Monday, it fell 0.55%.
The Parisian market was slowed down by the first economic repercussions, in particular with the jump in oil prices, following the surprise and massive offensive, which began on Saturday, by the Palestinian Islamist movement Hamas once morest Israel.
The conflict first led to a movement of investors towards safe haven financial assets, because they were perceived as safer in times of crisis, in particular government loans. This movement was “amplified” by comments from officials of the American Central Bank (Fed), “suggesting that the Fed would have finished with its cycle of rate increases”, note Natixis analysts.
This led to a sharp decline in rates in Europe on Monday, and an even sharper decline on Tuesday in the United States, a movement which favors the equity markets.
On Tuesday, the French 10-year rate, which is the benchmark, was stable at 3.42%.
In addition, following opening lower on Monday, Wall Street turned around following the European markets closed.
Few indicators are expected on Tuesday, but investors are awaiting the publication of an inflation indicator in the United States on Thursday.
Investors also continue to observe the continuation of the conflict triggered by Hamas once morest Israel, and whose “evolution is extremely uncertain”, relates François Rimeu, member of the strategy team of Française AM, and particularly on oil.
Oil prices fell 1% on Tuesday, following jumping 4% on Monday.
Reverse movements to Monday
The companies that were favored on Monday with the first stock market reactions to the outbreak of the conflict between Hamas and Israel are this time further behind: TotalEnergies was the only CAC 40 company in the red (-1.08% to 60.73 euros) . The values of sectors perceived as more defensive, such as Sanofi (+0.02% to 102.62 euros) and Orange (+0.64% to 11.07 euros), are also in decline.
The stocks which are growing the most are those most linked to economic activity, such as Renault (+2.80% to 36.44 euros), Alstom (+3.37% to 13.51 euros).
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