Wednesday, January 19

The Paris Bourse sets itself a record at the very start of the session to start the year

The control room of Euronext, the company which manages the Paris Stock Exchange, at La Défense, November 21, 2019 ERIC PIERMONT

The Paris Stock Exchange broke its absolute record in a few minutes after the first trades of the year on Monday, exceeding 7,200 points.

The CAC 40 index rose 0.86%, or 61.86 points, to 7,214.89 points shortly before 9:25 am, after having touched 7,223.15 points a little earlier, its new record.

Friday, it ended with a drop of 0.28% to 7,153.03 points, at the end of an exceptional year 2021, concluded with a gain of 28.85%.

After the end of the year celebrations, operators will gradually return to the markets, and trading volumes should increase during the week.

“The Covid-19 epidemic remains the input variable for any reflection on the profile of economic activity”, summarizes Hervé Goulletquer, of the Banque Postale AM.

Investors remain confident and are banking on limited and temporary disruption.

“The public authorities are working to keep business as smooth as possible. Then the private sector and people in general have learned to live with the virus,” continued Mr. Goulletquer, also citing the hope that the pandemic turns into endemic, with even more limited consequences on economic activity during the year.

The session will be marked by the final manufacturing activity figures (PMI) in December, for European countries and the euro zone in the morning, then for the United States in the afternoon.

“With less accommodating monetary policies, economic statistics could gradually become more obvious market movers (information moving indices) in the coming months,” notes Tangi Le Liboux, Aurel BCG analyst. He believes, however, that the markets are more sensitive to preliminary figures, given at the end of the previous month.

In Asia, the Chinese real estate giant Evergrande announced Monday a new suspension of its listing on the Hong Kong Stock Exchange, without explaining the reasons. It has already been classified in default by international rating agencies after failing to repay part of its colossal debt, around 260 billion euros, on schedule in November.

Renault is losing its mind

The car manufacturer Renault (+ 0.80% to 30.76 euros after a sharply lower opening) lost the lead in the French car sales market in 2021, after a drop of 14.7% compared to 2019. Despite a 6.1% drop in sales, Peugeot (Stellantis group, + 1.19% to 16.88 euros), takes first place.

The air flies away

The aeronautical values ​​progressed clearly: Airbus took 2.78% to 115.44 euros and Air-France-KLM took 1.78% to 3.94 euros after an increased recommendation from Citigroup.

The equipment manufacturer Safran, which announced 12,000 job creations worldwide in 2022, including 3,000 in France, rose 1.43% to 109.18 euros.

  1. Euronext CAC40

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