Cac 40: The pressure on French rates eases a little, the Paris Stock Exchange ends sharply higher

Cac 40: The pressure on French rates eases a little, the Paris Stock Exchange ends sharply higher
Cac 40: The pressure on French rates eases a little, the Paris Stock Exchange ends sharply higher

(BFM Bourse) – The CAC 40 rose significantly this Monday at the start of a week during which the PCE index will be published in the United States.

Will the Paris Stock Exchange end the week as well as it started this Monday? The CAC 40 ended up 1.03% at 7,706.89 points.

The market is keeping a close eye on developments in French politics as the National Rally, leading in the polls for the legislative elections, presented its program during a press conference.

Tensions on French debt are stabilizing or even reducing slightly. Shortly before the European close, the gap between the yield of France’s 10-year comparable Treasury bond (OAT) and that of the German bond (“Bund”) of the same maturity, an indicator of debt stress French, tightened a little. This gap stood at 70.5 basis points (0.705 percentage points), while it has exceeded 80 basis points over the past two weeks.

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Banks on the rise

“It seems that investors do not want to push the envelope further for the moment in terms of hedging against political risk,” considers Alexandre Baradez, head of market analysis at IG France. “As long as the OAT-Bund spread remains below 0.80 points, the CAC 40 can remain above 7,500 points,” he adds.

“At this stage, the markets are far from anticipating a worst-case scenario. That is to say the implementation of policies which would seriously hamper growth and induce a very strong slippage in public finances,” judges for his part. Sebastian Paris Horvitz, from LBPAM.

Markets will be watching this week for the release of certain indicators, such as the PCE index, the US Federal Reserve’s (Fed) preferred gauge for measuring inflation, which will be published on Friday afternoon.

On the stock side, Eurofins plunged 16% after suffering an attack from short seller Muddy Waters.

The testing and analysis group was one of the only stocks in the red on the CAC 40 where stocks battered by political risk sounded the bells of revolt. BNP Paribas gained 3.3%, Société Générale gained 2.1% and Edenred advanced 2.6%.

Valneva gained 11.15% as its anti-chikungunya vaccine was approved in Canada.

On other markets, the euro gained 0.3% against the dollar to 1.0730 dollars. Oil is gaining some ground. The August contract on North Sea Brent gained 0.7% to 84.88 dollars per barrel, while that of the same maturity on WTI listed in New York gained 0.7% to 81.31 dollars per barrel. .

Julien Marion – ©2024 BFM Bourse

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