The stock market began to rise in the last week of the year, relieved by the announcement of the signing by Donald Trump of the Congressional budget support plan intended to contain the effects of the health crisis. The American president also initialed the administration’s financing plan, thus avoiding paralysis for lack of credit. Activity is however limited with barely 250 million euros traded on Cac 40 securities. The session is all the more calm as the British markets are closed on Monday for “Boxing Day”.
Shortly before 10 a.m., the Cac 40 gains 0.76% to 5,564.07 points. Elsewhere in Europe, the Dax of the Frankfurt Stock Exchange rose 1.38% after a record 13,818.65 points, and the FTSE Mib Milanese takes 0.94%.
Donald Trump finally approved, on Sunday, a combined plan of 2.300 billion dollars relating to a tax package to help households and businesses, as well as additional funding from the federal budget, thus avoiding a “shutdown” of the administration , which would have intervened this Monday at midnight. The American president nevertheless reiterated his call to Congress to increase the amount of checks intended for Americans from 600 to 2,000 dollars. Its procrastination has nevertheless already had the effect of temporarily depriving some 14 million Americans of their unemployment coverage.
A support plan widely integrated into the lessons
Asian markets rose on Monday, with the exception of Hong Kong, weighed down by Alibaba’s new fall of more than 8% after the Chinese authorities accused its subsidiary Ant Group of abuse of a dominant position. The contracts futures US indices are on the upside. The lifting of the mortgage on the stimulus plan and the risk of paralysis of the federal administrations ” is positive for the markets “, Welcomes Masahiro Ichikawa, chief strategist at Sumitomo Mistui DS Asset Management, but,” on another side, this support plan has driven the market for quite some time and i would say it was largely integrated “, He nuances.
The trade agreement reached on December 24 between London and Brussels, which has yet to be ratified by the British and European Parliaments, and the start of the vaccination campaign in Europe give hope for the start of economic normalization in 2021. But fears remain on the variant of the highly infectious coronavirus which appeared in the south-east of England and identified in several European countries, including France, Japan and Canada during the weekend.
Cyclicals in sight
The values most affected by the health crisis are surrounded by the image ofAir France-KLM, up 2%, Getlink (+ 1%) and Accor (+1%).
Among other cyclical stocks, ArcelorMittall takes 1.7% and Alstom 1,5%.
However, it is the automotive sector that has the best sector performance in Europe with a gain of 1.5% of the associated Stoxx 600. Faurecia thus takes 2%, Valeo 1.7% and Michelin 1.5%. To Frankfurt, BMW is 2.2%. The German manufacturer plans to step up production of electric vehicles, the chairman of the board told the Augsburg General.
Finally, Dry (+ 2.4%) leads the Cac 40.
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