The Paris Stock Exchange ended with a breathtaking surge (+4.24%) on Tuesday, recording a third positive session in a row against a backdrop of falling bond yields which are restoring momentum to risky assets.
The CAC 40 index jumped 4.24%, returning above 6,000 points to 6,039.69 points, after rising 0.55% on Monday and 1.51% on Friday.
This dynamic comes “after economic figures (the ISM manufacturing indicator published on Monday, editor’s note) which go in the direction of a slowdown in the economy in the United States” and which have “as a corollary a drop in yields on government bonds. ‘State”, says Frédéric Rozier, portfolio manager at Mirabaud France.
“This rebound in a bear market” is “mechanical” at the start of the quarter, at a time when “underinvested market operators who were looking for an excuse to return to equities” were encouraged by the decline in yields on the sovereign debt market, tempers the expert interviewed by AFP.
Investors believe that an onset of economic slowdown could lead central banks to slow the pace of monetary tightening in the coming months.
But many analysts urge caution and watch carefully what US central bank officials say in the coming days before declaring victory.
Philip Jefferson, an official of the American central bank (Fed), warned that it would probably take time to see inflation slow down in the United States, stressing that economic growth should suffer.
All of the shares making up the CAC 40 index closed in the green.
The decline in bond yields was accompanied by a nice revaluation of growth stocks such as luxury (+6.38% for LVMH, +5.65% for Kering, +6.11% for Hermès) and technology (STMicroelectronics +5.35%, Capgemini +5.61%).