The Paris Stock Exchange begins the week up in the wake of Asian markets this morning. The acquittal of Donald Trump in his second impeachment trial now leaves the field open to the US Congress to focus on Joe Biden’s recovery plan. However, trading volumes are expected to be limited on this day when Wall Street is closed for Presidents’ Day, especially since the markets are closed in China for the Lunar New Year.
At 9:20 p.m. Cac 40 gains 0.82% to 5,750.25 points.
The Nikkei on a high of more than 30 years …
In Tokyo, the Nikkei 225 (+ 1.9%) closed above 30,000 points for the first time in more than 30 years on Monday, supported by stronger than expected growth in Japanese GDP in the fourth quarter. If it slowed from one quarter to the next, the Japanese economy grew by 12.7% at an annualized rate over the last three months of 2020, against + 10.1% expected, thus marking a second consecutive quarter of ‘improvement.
The good orientation of the Japanese market, such as the 1.5% increase in the Kospi in Seoul, is part of a more general movement of interest in equities with the prospect of the implementation of the 1.9 trillion stimulus plan. of Joe Biden’s dollars. ” The strategy of reflation set to gain further momentum with vaccine rollout and Biden administration budget spending », Estimates Esty Dwek, head of global strategy at Natixis Investment Manager Solutions. ” Yields should continue to rise, with cyclical sectors catching up to continue », She adds. The yield on the US 10-year bond hit a one-year high of 1.21% late last week.
… And Brent on a 13-month peak
On the oil front, a barrel of Brent from the North Sea rose 1.9% to 63.62 dollars, a level unprecedented since January 2020, boosted by the cold wave that hit the United States, and in particular Texas . In addition, Russian Deputy Prime Minister Alexander Novak said the markets are now balanced after the drop in demand caused by the health crisis last year, reports the Interfax agency. In Paris, Total is up 1.9%.
Among the main meetings of the week, the Fed is due to publish on Wednesday the minutes of the meeting of the monetary policy committee last month, which ended in a status quo in terms of interest rates. Also to be followed, Friday, the PMI Markit activity indices in the private sector in Asia, Europe and the United States. On the business side, 11 Cac 40 companies are due to publish their results this week, including Michelin this evening, not to mention BHP Group, Barclays, Daimler, Credit Suisse, Nestlé or Walmart.
Vivendi will distribute 60% of UMG
Vivendi jumped 22% after announcing its intention to distribute to its shareholders 60% of the capital of its subsidiary Universal Music Group (UMG) and to float it on the stock market by the end of the year.
Cyclical stocks and banks are buoyed by hopes of an economic recovery in anticipation of an upcoming vote by the US Congress on Joe Biden’s stimulus plan. ArcelorMittal gains 2.2%, while BNP Paribas, Agricultural credit and Societe Generale advance by more than 2%.
A l’inverse, L’Oreal yields 1.3% after its advance on Friday in reaction to better than expected results.
Danone is stable. The investment fund Artisan Partners, one of the shareholders calling for a change in governance and an improvement in profitability, will meet with several members of the board of directors of the agri-food group in the coming days, Reuters reports, citing sources close to the folder.
Unibail-Rodamco-Westfield folds 0.6µ. HSBC has downgraded the title of the commercial real estate company from “keep” to “lighten”.
–
