The Paris Stock Exchange rebounded strongly by 3.55% on Friday, betting on the absence of major economic sanctions against Russia and benefiting from low-cost purchases in the aftermath of a fall caused by the Russian invasion of Ukraine. .
The CAC 40 star index rose 231.38 points to 6,752.43 points, erasing almost all of its losses the day before when it had fallen 3.83%.
“The market is looking for itself”, after yesterday’s massive sale, some managers took up positions as of this Friday, explains the European equities manager at Axa IM, Gilles Guibout. However, it is “not sure that today’s rebound is a sign that everything is behind us”.
Ukrainian forces were fighting Russian soldiers in the capital Kiev on Friday, the second day of an invasion launched by Vladimir Putin who, defying Western sanctions, called on the Ukrainian army to take power.
Reassuringly for the market, Russia has not yet been excluded from the Swift banking system, “this is proof of the will of Europeans to be able to continue to buy Russian gas”, explains Gilles Guibout.
As a result, after their surge the day before, commodities, such as oil, gas and wheat, retreated on Friday.
The markets also welcomed the beginnings of a possible discussion between Russia and Ukraine. Vladimir Putin would indeed be ready to send a delegation to Minsk, Belarus, for talks with Ukraine, according to Russian agencies, something systematically refused by the Kremlin so far. Shortly after, Vladimir Putin nevertheless called on the Ukrainian army to “take power” in Kiev.
Chinese President Xi Jinping, who has close relations with Putin, spoke with him by telephone. China “supports Russia in resolving (the conflict) through negotiations with Ukraine,” state broadcaster CCTV reported.
“Any element that suggests a peaceful resolution of the conflict is likely to reassure”, comments Gilles Guibout, without knowing what credibility to give to these dialogue efforts.
A sign that risk appetite was returning, government bond yields were rising. The interest rate on the US 10-year debt came back close to 2%.
The Casino distributor was heavily sanctioned in the wake of the publication of declining sales and a debt that swells again. The stock plunged to a 30-plus-year low of 16.02 euros, down 12.29% from Thursday’s close.