The Paris Bourse continues its rebound on Wednesday, in the wake of the sharp rise on Wall Street (+ 1.6% for the Dow Jones, + 2.4% for the Nasdaq Composite, to session highs). In the middle of the day, the Cac 40 rose 0.27% to 6,983.81 points, but in a very low volume of trade, barely above 600 million euros and worthy of a truce for confectioners. In New York, index futures contracts point to an opening around equilibrium.
According to Timothy Lesko, director at Granite Investment Advisors, “ the market appears to have reacted to a short-term oversold position. Omicron and all the uncertainties surrounding it create high volatility. Bonds have been overbought, stocks have been oversold and we are now looking to anticipate the future. »
Same analysis for Craig Erlam, at Oanda: “ Just as we shouldn’t get carried away by yesterday’s massive selling, which was likely caused by low liquidity before the holidays, we shouldn’t over-interpret Tuesday’s rebound. These are illiquid markets, for which Omicron continues to form a huge cloud of uncertainty. ” Most ” if the consequences induced by Omicron remain benign, which seems to be the subject of a debate, we could attend a rally. »
” We are ready “
Speaking to the Americans on Tuesday evening, Joe Biden wanted to be reassuring on the health front. It’s not ” not March 2020, he told reporters gathered at the White House, 200 million people are fully immunized, we are ready, we know more “. Regarding people still unvaccinated, the president, on the other hand, considered that they had ” good reasons to be worried ».
New measures have been announced. Some 500 million self-tests will be available to Americans starting in January and distributed free to those who request them online. 1,000 U.S. Army medical personnel will be deployed to bolster the workforce in the most overburdened hospitals. Temporary supplementary vaccination centers headed by the Federal Disaster Management Agency will be open this week, especially in New York.
Resist in a less accommodating context
With the Delta variant, ” the economy held up better than expected, says Keith Buchanan, portfolio manager at Globalt Investments. Many would argue that this is due to the monetary stimulus measures. With Omicron, this will not necessarily be the case. The question now is whether the economy and the market can hold up given much less accommodating fiscal and monetary policies. »
Several statistics are expected today in the United States. The national activity index of purchasing managers for the Chicago area is expected in November, the latest estimate of third quarter growth, the Conference Board’s consumer confidence index in December, sales of existing homes in December. November and the Department of Energy’s weekly oil stocks.
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