Published on : 09/09/2022 – 18:54Modified : 09/09/2022 – 18:53
Paris (AFP) – The Paris Stock Exchange ended up sharply on Friday, supported by the banking sector which is benefiting from the rate hike decided the day before by the European Central Bank (ECB).
After a gloomy start to the week, the Parisian rating gained 1.41% to 6,212.33 points and signed a weekly increase of 0.73%.
The session was marked by “a theme of technical rebound after a few days of weaknesses and doubts” but “in a context of very sluggish trading volume”, depicts Mikaël Jacoby, head of continental Europe brokerage for Oddo, interviewed by the AFP.
“There were no big surprises with regard to the rise in rates” from the ECB, which put an end to the questions on Thursday by raising its key rates by 75 basis points, an unprecedented scale to fight against inflation even if it means taking the risk of plunging the euro zone into recession.
In the United States, the Federal Reserve has been gradually raising its rates since March to slow demand, and thus ease the pressure on prices. On Friday, one of the governors of the American central bank (Fed) Christopher Waller said he anticipated raising interest rates at least until the beginning of 2023.
“The markets are at a crossroads. There is a lot of wait-and-see attitude” in view of the third quarter results which will provide information on the state of health of companies, and in view of new economic data in a context of energy crisis and high inflation, adds the expert.
They are also waiting for the consumer price indicator (CPI) for August in the United States, which will be published on Tuesday, to find out if the decline in inflation in July is confirmed and if the inflationary spiral is under control.
In many respects, the situation is still uncertain on the evolution of the war in Ukraine and the impact of the tightening of monetary conditions on growth.
“The macroeconomic environment has deteriorated, with geopolitical tensions, supply disruptions, soaring energy prices and tighter central bank monetary policies. All of which have reduced the global outlook ( …)”, underlines Alain Guélennoc, chairman of the board of directors of Federal Finance Gestion.
Banks supported by rising rates
Already at the top of the bill on Thursday, banking stocks have again benefited from the ECB’s decision to raise the rate on bank deposits at the ECB to 0.75%.
Societe Generale took 2.88% to 23.74 euros, BNP Paribas 2.61% to 48.68 euros, and Crédit Agricole 2.31% to 9.43 euros.
© 2022 AFP