The Paris Stock Exchange continued its rise (+ 0.88%) on Wednesday morning, motivated by hopes of recovery and the stabilization of long rates in the bond market.
At 9:16 a.m., the Parisian flagship index CAC 40 gained 50.90 points to 5,860.63 points the day after a small increase of 0.29%.
The day before, if “technology stocks have deteriorated mood on Wall Street,” in Europe, “investors were inspired by the stabilization of the sovereign debt market,” said David Madden, an analyst at CMC Markets.
Last week, the sharp rise in sovereign bond yields threatened the upward trend in equity markets.
Since the beginning of the month, the tension in bond market rates has calmed down, but “we will still need to be alert in future sessions on the trajectory of equity markets,” warns Christopher Dembik, associate director of Berenberg.
For now, positive news about the health front in the United States gives hope for a return to normal life.
U.S. President Joe Biden has promised that there will be enough vaccines against Covid-19 for all adults in the country before the “end of May.” In the process, the State of Texas announced the upcoming lifting of the obligation to wear a mask and the full reopening of its businesses.
Meanwhile, service activity fell last month in China to its lowest level in ten months, according to the Purchasing Managers ’Activity Index (PMI).
During the day, investors will react to February service PMIs in the eurozone and activity to ISM services in the United States.
ADP’s monthly report on private sector job creation in the United States in February will also be closely monitored.
Luxury adorned to your liking
The sector, which accounts for 25% of the Paris coast, supported the trend. Hermès rose 0.93% to 934.20 euros, benefiting from an increase in JPMorgan’s recommendation to “neutral” versus “underweight”.
LVMH gained 1.17% to 545.60 euros and Kering + 0.81% to 562.40 euros.
The car exploding
Stellantis gained 2.49% after the release of the annual results of PSA and Fiat Chrysler (FCA), which remained profitable despite the crisis in the automotive sector.
But it is the competitor Renault that has taken the lead in the CAC 40 (+ 4.72% to 39.19 euros).