Paris gained 1.79%, Frankfurt 1.33% and London 1.26%. Green was also used in Milan (+ 0.28%) and Madrid (+ 2.44%).
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Determined to believe in the recovery, especially after the announcement of a European plan of 750 billion euros, European markets reaped clear gains on Wednesday.
Paris gained 1.79%, Frankfurt 1.33% and London 1.26%. Green was also used in Milan (+ 0.28%) and Madrid (+ 2.44%).
“European indices have had good sessions since Monday. Overall, there is optimism around the decline in infections despite the deconfinement processes and the specter of a second wave is fading a little, “said Andrea Tuéni, an analyst at Saxo Bank, with AFP.
“The inflow of liquidity provided by central banks has a lot to do with it,” he added, “as does the European recovery plan of 750 billion euros which is an important factor of support”.
With a recovery fund of 750 billion euros to support the European economy damaged by the coronavirus, the President of the European Commission Ursula von der Leyen on Wednesday unveiled an exceptional aid plan, and called on the 27 to ” put aside old prejudices ”to support it.
“This is why the geopolitical tensions between the two largest world economies have been ignored since Monday in Europe, but the situation remains complicated,” said Tuéni.
European markets “were not completely insensitive to the decline in the American technology sector which is often the most reactive on this issue” and the dynamism was somewhat weakened in the second half of the session, nuanced the expert.
Donald Trump has promised Tuesday to announce by the end of the week his response to the controversial bill that China wants to impose on Hong Kong, warning that it could lose the territory its status as a financial center international.
The European debt market also benefited greatly from the announcement of the European plan, registering a clear easing, Italy in the lead, which enabled the country to reduce the spread between its borrowing rate to ten years and that of Germany which sets the benchmark on the market. The Italian spread touched a low since the end of March at 186 basis points during the session before finishing at 191.
The automobile sought
The automotive sector took full advantage of the buoyant context, starting with Renault in Paris which took off from 17.47% to 22.50 euros.
In Frankfurt, Daimler (+ 8.85% to 35.55 euros) and BMW (+ 4.86% to 54.39 euros were also sought.
The return of optimism has also helped banks to rebound. Societe Generale rose by 7.67% to 14.45 euros, BNP Paribas by 9.52% to 33.95 euros and Crédit Agricole by 5.48% to 8.01 euros.
The technology sector, however, suffered in the wake of its American counterparts. In Paris STMicroelectronics lost 5.06% to 21.76 euros and Worldline 5.42% to 62.88 euros. In London, Aveva fell 3.68% to 3,821.00 pence.
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