The Paris Stock Exchange returns to 7,000 points after the Fed

The Paris Stock Exchange returns to 7,000 points after the Fed
The Paris Stock Exchange returns to 7,000 points after the Fed

(AFP) – The Paris Stock Exchange is up 1.08% in early trading on Thursday, driven by investors’ positive assessment of the intervention of the President of the American Central Bank (Fed), particularly on the maintenance of key rates.

Published on : 02/11/2023 – 09:37

2 mins

The flagship CAC 40 index gained 74.88 points to 7,007.51 points around 9:20 a.m., a level not seen since October 18. On Wednesday, it finished up for the third time in a row, by 0.68%.

The start of the session is also marked by the drop in bond interest rates: the 10-year loan from the French State falls to 3.34%, compared to 3.37% the day before.

Investors are digesting the conclusions of the Fed meeting. For Christophe Boucher, investment director of ABN Amro IS, the markets mainly retained the words of the president of the institution Jerome Powell that “the Fed would act + very cautiously +” in the future, in particular on a possible new rate increase .

At the end of its monetary committee meeting, the Fed kept the status quo on its key interest rates for the second time in a row, a decision expected by the markets.

Investors are mainly wondering whether key rates will be expected to rise again or find clues as to how long they will remain at a high level.

“Overall”, Jerome Powell’s tone was “a little more accommodating” than previous times, Deutsche Bank analysts agree.

Today’s session will once again be marked by central banks, including the meeting of the Bank of England.

Before that, investors are awaiting the final publication of PMI activity indicators for euro zone countries and employment indicators in the United States, before the monthly report on Friday.

Onepoint takes a stake in Atos

Atos shares rose 11.92% to 7.02 euros, after the announcement by the consulting firm Onepoint that it had increased to 9.9% of the capital and voting rights of the group currently in difficulty. . He previously held less than 5%.

Atos has gained 18.26% since the start of the week, but remains down 22% over the year.

Rebound of troubled companies

The best progressions in the CAC 40 were from companies which suffered the worst losses during the year, such as Alstom (+3.18% to 13.15 euros), Teleperformance (+2.38% to 113.80 euros), Kering (+2.09% to 390 euros), or even Eurofins Scientific (+1.98% to 49.36 euros).

© 2023 AFP

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