The Paris stock exchange rose 0.40% on Monday morning, with falling interest rates and Wall Street momentum giving investors momentum ahead of a busy week of earnings.
Paris odds rose 23.86 points to 6,059.25 points around 9:40 am. She had lost 0.85% on Friday, which hadn’t stopped her from gaining 1.47% in the week, a third weekly gain. Such a series had not occurred since the strong rebound between July and mid-August.
“The renewed risk appetite seems more justified than this summer,” Banque Postale AM analysts write.
“In fact, it’s not based on the idea of a quick pivot in central bank policies when investors are already very defensive and have more reasonable rates and economic expectations,” they say.
The cost of borrowing in France declined after peaking 3.09% on Friday, and fell to 2.88% on Monday.
The period of the company results had already served in the second quarter to launch the rebound in prices. This week, nearly half of the CAC 40 companies will publish their results.
The upside was, however, far less significant than that of the very first trade after the opening, where the Paris index had gained more than 1%, faltering momentum following the publication of the main PMI activity indicators.
Indeed, the French economy stagnated in October, according to the S&P Global Flash PMI index, which reached its lowest level in the last 19 months due to a contraction in activity in the manufacturing sector.
Luxury weighed down by China
The stocks most exposed to China, in particular the predominant luxury sector, were affected by the decline in the indices of this country (-6% in Hong Kong), after the reconfirmation of President Xi, whose authority seems more than ever strengthened.
Hermès fell by 2.26% to € 1,278, LVMH by 1.19% to € 52.34 and Kering by 0.45% to € 452.10.
Commodities also suffered from signs of a decline in economic activity in China in September, with a drop in exports and despite a more dynamic than expected second quarter.
TotalEnergies fell by 1.55% to € 52.15 and ArcelorMittal by 0.18% to € 23.27.
A lithium mine in France for Imerys
The industrial mining group Imerys announced on Monday the start of the extraction by 2027 of a lithium deposit in the Allier in France (center), which will be “one of the largest” in Europe, and will serve to accelerate the energy transition supplying the electric car industry. After an increase of over 5% at the opening, the stock only took 3.59% to € 37.50.
Solvay found the formula
The Paris-listed Belgian chemical group said it expects “sales and EBITDA to hit new records in the third quarter of 2022” and once again drastically raised its forecasts for the year, in a press release released Monday. Its results are expected on November 3.
The stock, listed in Paris, took 1.09% to 90.72 euros, after climbing 5% in early trading.
Icade fears a slowdown
Icade, the real estate subsidiary of Caisse des dépôts, generated revenues of 1.17 billion euros in the third quarter of 2022, up 3.4% in one year, despite a slowdown in development activity. Due to the rise in interest rates, “we have slowed down our investment program,” its chief executive, Olivier Wigniolle, told AFP. The stock advanced slightly (-0.17% to € 36.12).
fs / kd / pta