The Paris Stock Exchange regained 7,000 points on Monday, bracing for an avalanche of corporate results and economic indicators that should drive the market through the rest of the week.
The CAC 40 star index rose 0.52% or 36.03 points to 7,032.02 points. After a slightly higher opening, the Paris market accelerated on the back of the positive trend on Wall Street. It gained 0.63% on Friday, limiting its weekly losses to 0.39%. Since the beginning of the year, the Parisian index has gained just over 8%.
However, investors are “in a wait-and-see position”, “we may sense a slight lull” before corporate earnings season is in full swing in the coming days and as US (Fed) and European central bank meetings approach (ECB), tempers Céline Weill-Alliel, co-manager of Uzès Gestion.
“The market expects fourth-quarter results to confirm its optimism,” he told AFP.
A number of corporate results are expected in the US, including those from Microsoft on Tuesday and Tesla on Wednesday. The world’s number one luxury and Europe’s largest capitalization LVMH will kick off its annual results within the CAC 40 on Thursday after the close.
During the week, some macroeconomic data could also move the markets, such as leading PMI indicators on both sides of the Atlantic, the business climate in Germany, the preliminary data on US growth for the last quarter and the indicator of the US inflation ( PCE).
On the monetary policy front, market operators are counting on a slowdown in the Fed’s key rate hike at its next meeting scheduled for January 31st and February 1st.
As the European Central Bank (ECB) prepares to hike rates again at its next monetary policy meeting in early February to reduce inflation, Germany’s financial sector supervisor (Bafin) has warned that some banks in the country would be threatened if of a further sharp rise in interest rates.
ECB President Christine Lagarde is expected to speak on Monday after European markets close.
The advantage of cyclical values
The shopping center giant Unibail-Rodamco-Westfield recorded the largest increase in the CAC 40 (+4.72% to 58.37 euros). On SBF 120, another shopping center operator, Klépierre, rose by 2.54% to 23.37 euros and the real estate group Icade gained 3.05% to 44.62 euros.
The luxury industry was buoyed by improving demand prospects in China amid the Lunar New Year holiday: LVMH gained 0.68%, Kering 1.07% and Hermès 0.92%.