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Paris (AFP)
The Paris Bourse rose sharply by 2.62% Tuesday at mid-session, reinvigorated by the hope of a recovery in the world economy and a major American stimulus plan.
The CAC 40 index took 128.85 points at 1:00 p.m. (11:00 a.m. GMT), above 5,000 points, to 5,038.36 points.
On Wall Street, futures contracts foreshadowed an opening up sharply as well: the Dow Jones took 0.99%, the Nasdaq 0.56% and the S&P 500 0.69%.
“The clouds of uncertainty are gradually clearing and a ray of optimism is appearing,” said Stephen Innes, chief market strategist for AxiCorp, citing in particular the hope of a new massive American stimulus plan.
Despite the torpor of an overwhelming heat in August and the sharp drop in volumes, investors remain on the lookout for hot topics of the moment, including the anti-Covid recovery in the United States, and the outlook for the global economy.
Regarding the second, the last statistic published on Tuesday was enough to comfort investors: sales of passenger cars in China recorded in July an increase of 7.9% over one year, the strongest since the start of the Covid pandemic -19.
In the wake of this information, the financial centers of Hong Kong and Tokyo closed on jumps of 2.11% and 1.88%. Shanghai, however, lost 1.15%.
Also released on Tuesday, German investor morale in August hit its highest level since 2004.
Last week, several statistics on the recovery of industrial production, especially in France, Germany, Italy and Brazil had already put balm in the heart of market players.
Because despite the 20 million cases of coronavirus in the world since the start of the epidemic according to AFP, investors see no cause for concern “as long as the contaminations do not trigger new drastic containment measures”, says Ipek Ozkardeskaya, senior analyst for Swissquote Bank.
Logically, stocks dependent on the good health of the global economy benefited: Accor jumped 5.74% to 25.05 euros after a sharp increase the day before, Airbus 4.19% to 75.08 euros, and Renault from 4.53% to 25.17 euros.
Less favorable statistics, on the other hand Tuesday, the number of people employed in the United Kingdom fell by 730,000 between March and July, its worst tumble since the financial crisis of 2009.
Regarding the US stimulus, scrutinized for several days, the signing of presidential decrees on Saturday “could be more of a starting point towards stronger measures, than a point of arrival”, estimates Michael Hewson, chief analyst for CMC Markets UK , explaining according to him the ambient optimism.
While negotiations between Democratic and Republican parliamentarians are still slipping, each blaming themselves after two weeks of tense discussions, Donald Trump signed four decrees on Saturday providing for various aid for the unemployed, precarious tenants or students.
Among the other stocks of the day in Paris, Vivendi (+ 3.21% to 24.10 euros) and Amber Capital, first and second shareholders of the Lagardère group (stable at 14.60 euros), announced that they had signed a pact in view to obtain seats on the supervisory board of the publishing group, claiming to act “following the very poor results” of the latter.
The industrial minerals group Imerys (+ 3.07% to 35.58 euros) announced on Tuesday the acquisition of a majority stake in the Turkish group Haznedar, a manufacturer of refractory bricks for the steel, cement and petrochemical industries.
© 2020 AFP
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