The Paris stock exchange rose 0.45% on Monday, satisfied with the measures announced in China to support the real estate sector and still full of hope regarding US monetary policy.
The CAC 40 stellar index gained 29.58 points to 6,624.62 points around 10:00. It was up 0.58% on Friday and ended the week up 2.78%.
The release of weaker-than-expected US inflation data for October for October blew a wave of optimism in the markets last week as the US central bank now has more leeway to slow its rate hikes.
“It is too early to conclude that the battle against inflation is over,” warns Sebastian Paris-Horvitz, research director at Banque Postale AM.
A warning also expressed by members of the Federal Reserve.
Investors were also excited on Monday about measures unveiled by China to revive its real estate sector, including credit support for developers.
“This ranges from an extension of bank support for property developers, particularly to alleviate their liquidity problems, to incentives for buyers to return to the market,” explains Paris-Horvitz.
The real estate sector in China is a key sector of the economy which, along with construction, accounts for about a quarter of GDP and supports an army of low-skilled workers.
“The Chinese government seems well committed to supporting the economy”, concludes the analyst from La Banque Postale AM, noting “that a break with the past is progressively consolidating”, also in terms of health.
On Friday, Beijing announced a relaxation of some measures against Covid-19 in China, including a reduction in quarantine upon arrival in the country.
Presidents of the United States and China Joe Biden and Xi Jinping will meet on Monday on the sidelines of the G20 in Bali.
Teleperformance in Colombia
Teleperformance saw its share price drop more than 30% on Thursday before being suspended after allegations of Colombian labor law violation it disputes.
French call center giant Teleperformance said on Monday that its Colombian division will meet with the Labor Ministry to “initiate a dialogue” about its activities in the country on Wednesday.
The stock took 4.16% to € 197.90 on Monday.