The Paris Stock Exchange was up 0.53% in the first trade on Tuesday, after five sessions of decline, inflation and the responses of central banks still dictating the news of courses.
The star CAC 40 index advanced 31.86 points to 6,093.45 points around 9:30 a.m. On Monday, it had fallen by 0.26%.
On Monday, Wall Street ended higher, with gains around 0.7%, as investors took advantage of a bargain hunt after heavy losses last week. The broader S&P 500 index reversed its bearish move after flirting with its low on Friday, which corresponded to a two-month low.
The US central bank begins its two-day meeting on Tuesday, after which it will proceed to another sharp increase in its key rate to fight against inflation. Analysts generally agree on a third consecutive 75 basis point increase, although some are even considering 100 basis points.
From the point of view of the American Central Bank, “inflation remains too high and the time has come for tightening” and “firmness” a few weeks before the mid-term elections, summarizes Thomas Costerg, economist at Pictet.
These market conditions are “tricky” for investors to manage, said Christopher Dembik, director of macroeconomic research at Saxo Bank. “This will reduce the flow of liquidity that will enter the economy and the financial markets”, causing “difficulties in refinancing” for companies, he underlines.
France’s 10-year borrowing rate came close in early trading to its highest for the year at the end of the year, approaching 2.38%, while it was still at 0.2% at the start of the year. the year.
The FDJ bets on horses
La Française des Jeux rose 1.37% to 31.79 euros after announcing Monday that it was in exclusive negotiations to buy ZEturf, “second operator of the French market for online horse betting” behind PMU. Founded in 2001, ZEturf holds around 20% market share in France in online horse racing betting and is present in the Netherlands, Belgium and Spain.
Luxury carries the CAC
Luxury companies, heavyweights of the rating, occupied the forefront of the CAC 40: Hermès took 2.01% to 1,267 euros, Kering 2.16% to 503.80 euros, LVMH 1.48% to 650.30 euros. Related values, such as L’Oréal (+ 1.35% to 337.70 euros), or EssilorLuxottica (+ 1.31% to 146.80 euros), also progressed.