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Paris (AFP)
The Paris Stock Exchange ended up 0.73% Monday, starting a week that will be very busy in macroeconomic data with, as a common thread, the evolution of the Covid-19 pandemic.
For the penultimate session of the semester, the CAC 40 index gained 35.82 points to 4,945.46 points. Friday, it had finished down 0.18%, bringing the decline to 1.40% over the week.
The markets continue to “make the distinction between new cases of infection in the United States which give the impression that the situation is not at all under control and the central banks which are there in support”, comments for l ‘AFP Andrea Tuéni, analyst at IG France.
The good performance of Wall Street, supported by Boeing, allows the market “to move away from somewhat risky levels” but “there is also a technical factor in the rebound observed” in the session after a week of decline, underlines the specialist.
Home sales pledges in the United States registered a record 44.3% increase in May after two months of a sharp drop caused by containment measures to stem the Covid-19 pandemic.
However, the epidemic has not disappeared post-containment: the virus continues to wreak havoc in the United States and seems to be restarting in China, where the Chinese army has authorized the use in its ranks of a vaccine against Covid -19.
Investors see a risk that the epidemic will reinforce its negative effects on economic growth if new restrictions are put in place, even if central banks and governments remain in motion.
Preliminary meeting at the European recovery plan, German Chancellor Angela Merkel and French President Emmanuel Macron will try in the evening to advance this project of 500 billion euros, financed by mutualized European debts.
Another positive factor is that the German Minister of Finance has given his full support to the European Central Bank’s aid programs for the euro zone, following criticisms expressed by the highest German court in a resounding judgment.
On the statistics side, the agenda will be very full this week with in particular the publication of the latest report on employment in the United States, the index of confidence of American consumers, or even leading indicators PMI.
The publications in July of the second quarter, combined with the outlook for companies, will allow investors to understand the rest with a little more visibility.
“The real question that nevertheless arises is that of the development of demand in the coming quarters”, underlines William De Vijlder, chief economist at BNP Paribas.
– Danone and Capgemini lagging behind –
In terms of values, Gapgemini (-2.47% to 100.80 euros) posted the most pronounced decline in the CAC 40.
Danone followed suit (-2.11% to 62.10 euros) after warning that its activity had slowed down in the 2nd quarter of 2020 due to the health crisis, with in particular sales of bottled water “down around 30% “.
Total lost 1.69% to 34.55 euros, ballasted by crude oil prices.
At the other end of the flagship CAC 40 index, Renault climbed 5.25% to 22.07 euros while Peugeot rose 2.35% to 14.18 euros.
© 2020 AFP
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