(News Bulletin 247) – After a hesitant start to the session, the Paris Stock Exchange closed up, driven by the rebound in oil stocks. The CAC 40 gained 0.35% at the end of a day with little news and on the eve of the minutes of the American Federal Reserve.
After having resisted a gloomy trend at the start of the session, the Paris Stock Exchange closed slightly higher at the end of a day with little news and on the eve of the minutes (minutes) of the last meeting of the US Federal Reserve monetary policy.
The CAC 40 ends up 0.35% at 6,657.35 points, driven by oil stocks after Saudi Arabia’s denial of potential production increases at the next meeting of the Organization of the Petroleum Exporting Countries and their allies.
However, caution continued to dominate investors, still worried by the resurgence of the pandemic in China where the number of daily cases exceeds 30,000, close to the record reached last spring. Beijing is again closing restaurants, sports halls and tourist sites.
Moreover, the OECD has joined the list of institutions presenting very unattractive economic prospects. The organization estimated on Tuesday that global growth would suffer a sharp slowdown next year, falling from 3.1% this year to 2.2% in 2023. The OECD called on countries to continue tightening monetary policy and asked to “target” fiscal policy to curb inflation.
On the monetary policy side, the President of the Bundesbank, Joachim Nagel, estimated that the European Central Bank should reduce its balance sheet from the beginning of next year to fight against the sharp rise in prices in the euro zone.
Still on the subject of monetary policy, investors are awaiting the publication on Wednesday of the minutes of the US Federal Reserve meeting before the publication of those of the European Central Bank meeting on Thursday.
Cleveland Fed President Loretta Mester on Tuesday expressed support for raising rates by 50 basis points (0.5%) in December, while Mary Daly of the Cleveland Fed San Francisco, expressed concern over an aggressive approach at the “risk of overdoing it”.
TotalEnergies leading the rises of the day
The Paris Stock Exchange benefited from the rebound in oil stocks. These titles benefited from the denial of Saudi Arabia. This denial, which occurred after the European close, had allowed black gold and American oil stocks to rebound on Monday.
The tricolor values rebound in turn. TotalEnergies gained 4.4%, Vallourec +9.6% and Schlumberger grew by 5.7%.
Another well-oriented value: Interparfums, which advanced nearly 5% after once again raising its annual targets.
Fears over the evolution of coronavirus cases in China have penalized luxury groups. L’Oréal lost 1%, Hermès lost 0.95% and LVMH limited its losses to 0.2%
On the side of more modest capitalisations, Nicox dropped more than 11%. The biotechnology company specializing in ophthalmological treatments announced on Tuesday a fundraising through a capital increase of 6.85 million shares.
On other markets, the euro advanced 0.3% against the dollar to 1.0272 dollars. Oil prices continue to rise. The January contract on Brent from the North Sea goes up 2% to 89.33 dollars a barrel, while that of the same expiry on WTI listed in New York, advances by 2.2% to 81.61 dollars. the barrel.