(News Bulletin 247) – The Paris Stock Exchange approaches this last week of March on the rise. The CAC 40 benefited from the easing of fears about the banking sector and a surprise improvement in the business climate in Germany in March.
The Paris Stock Exchange transformed its attempted rebound, supported by signs of calm in the banking sector.
The CAC 40 ended up 0.9% at 7,078.27 points on Monday evening, after attempting a brief foray into 7,100 points during the session. The progression of the day nevertheless allows the Paris Stock Exchange to make up for part of the delay incurred on Friday (-1.74%).
The Parisian market was supported by the takeover of “all the deposits and loans” of Silicon Valley Bank (SVB), which went bankrupt in early March, by the American bank First Citizens, whose action gained more than 40% Monday on Wall Street.
“The authorities have once again worked hard this weekend to try to repair the damage of recent weeks. This weekend, a large part of the SVB was sold to the First Citizens Bank, with the FDIC retaining the remaining securities and other assets,” said Oanda analyst Craig Erlam.
Improved morale of German contractors
“What is important is that the various institutions in the United States and Europe continue to demonstrate their ability to quickly and decisively manage the fallout from the recent turbulence and contain it before it escalates. regain the confidence of the markets, which has been shaken” he continues.
According to information reported by Bloomberg over the weekend, US authorities are ready to expand the Federal Reserve’s emergency lending program. This support measure would allow regional banks to benefit from additional time to strengthen their balance sheets. Information that also helps support the trend.
In addition to the lull in the banking sector, investors learned earlier in the morning of an unexpected improvement in the morale of German entrepreneurs for the month of March. The IFO indicator rose by 2.2 points to 93.3 points for the sixth consecutive month and did better than the consensus which was counting on a level of 91.2 points for the third month of the year.
Banks in the line of fire
The shares of banking groups focused the attention of investors on Monday. BNP Paribas took over 2.6%, Axa 1.3% when Crédit Agricole gained 0.9% and Société Générale 0.3%.
As for other values, Orpea ends down sharply by 9% while the operator of retirement homes announced Friday evening that it was placed in the “accelerated safeguard” procedure. In its wake, Korian folded 4.7%.
Analyst recommendations also drove the trend on Monday. Orange appreciated by 2.1%, supported by Morgan Stanley, which raised both its recommendation to overweight and its price target at 14 euros.
Plastic Omnium (+3.9%) benefits for its part from the support of JPMorgan, which raised its opinion of underweight to neutral with a target price of 17 euros.
On the other hand, JPMorgan analysts were less tender with Pernod Ricard (-1.35%), the title of the spirits giant having been downgraded to neutral.
As for other assets, the euro recovered a few fractions (+0.22%) to 1.0786 dollars. Oil prices are accelerating upwards. A barrel of Brent from the North Sea for delivery in May rebounded 2.4% to 76.37 dollars, while a barrel of American WTI for the same term fell 2.8% to 71.21 dollars.
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