(CercleFinance.com) – The Paris Stock Exchange should continue its progression Tuesday morning in the wake of Wall Street and Asia, the stock markets remaining driven by growing optimism about growth and results, but above all by the undeniable strength of technological stocks.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – December delivery – rose by 26.5 points to 7461.5 points, suggesting a green start to the session.
The Parisian market closed Monday’s session with an increase of 0.6% to 7,413 points, which allows it to accumulate a gain of 1.3% in four sessions and erase a large part of the losses suffered on the two first weeks of the year.
Stakeholders continue to position themselves to buy in view of a busy week, which will be notably marked by the European PMIs tomorrow then by the ECB meeting and the American growth figures on Thursday.
‘It appears that investors want to jump on the bullish bandwagon after realizing that they did not benefit from the recent rally, while the outlook for growth and inflation is improving more than expected,’ explain the Danske Bank analysts.
In the immediate future, European stocks should benefit from the recovery of Chinese stock markets, which have benefited from rumors suggesting the implementation of support measures from Beijing in order to support the stock markets.
The CSI 300 index of the main Chinese stocks recovered 0.5% on Tuesday after reaching five-year lows the day before.
In Tokyo, the Nikkei index fell 0.1%, but remains close to 34-year highs while the Bank of Japan (BoJ) maintained, unsurprisingly, its ultra-accommodating monetary policy.
Activity in Europe looks very calm in terms of statistics today, but could be driven by announcements on the results front, such as those from Ericsson which this morning revealed a heavy loss due to restructuring charges .
On the other side of the Atlantic, Johnson & Johnson, Procter & Gamble, Netflix, Verizon, Texas Instruments, General Electric, Lockheed Martin, Halliburton must publish their accounts today.
Thanks to the dynamism of the technology sector, Wall Street broke records again on Monday following a disappointing indicator index, likely to encourage the Federal Reserve to loosen its monetary policy.
“It seems that the markets are resilient and that nothing is capable of causing them to fall permanently,” underlines Christopher Dembik, investment strategy advisor at Pictet AM.
‘At most we should expect profit taking at the end of the week if the ECB meeting disappoints, which is highly likely,’ he adds.
‘All this confirms that stocks are essential, regardless of the state of the cycle and the risks present, if we are looking for returns,’ concludes the analyst.
The interest rate markets remain calm, with European yields sensitive to expectations of monetary policy changing little while awaiting announcements from the ECB.
The yield on ten-year German bonds fell below the threshold of 2.30%, while that on American Treasuries of the same maturity fell to around 4.10%.
There were also few differences on the foreign exchange market, where the euro nevertheless interrupted its slide against the dollar by returning towards 1.0915 against the ECB’s two-day dollar.
On the energy market, oil prices are moving forward in the face of tensions in the Red Sea with a barrel of American light crude (WTI) gaining 2.4% to 75.2 dollars, where Brent is advancing more. modestly by 0.1% to $80.1.
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2024-01-23 07:30:00
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