(News Bulletin 247) – The Paris Stock Exchange ended sharply higher this Monday. But the real star of the day remains Tesla, which accelerates its progress at the close of the European markets, powered by Morgan Stanley.

During a session without major news, the CAC 40 retained part of its morning gains to finish up 0.52% at 7,278.27 points.

The major meetings for investors will take place later in the week. The climax will take place on Thursday with the monetary policy conference of the European Central Bank (ECB) and the speech of its president, Christine Lagarde.

The monetary institution will face its “most difficult decision in a year”, judge Xavier Chapard of LBPAM.

“We believe that the ECB should pause in its rate increases while indicating that it remains ready to raise rates further if necessary and above all that it will maintain its high rates for a certain time. The risk of a “latest increase this week remains significant, however, and market expectations (which attach a probability of more than a third to an increase) seem reasonable” he nevertheless explains.

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Tesla roars on Wall Street

In the meantime, the markets have taken note of the new economic forecasts from the European Commission which lowered its projections for the evolution of gross domestic product (GDP) for the euro zone, counting on +0.8% this year and +1.3 % for 2024 (compared to +1.1% and +1.6% respectively previously).

“The new forecasts will not come as a major surprise and may even prove overly optimistic over time, but they come days before the next ECB meeting and could prompt some policymakers to vote in favor of a pause in the cycle of monetary policy tightening”, deciphers Craig Erlam of Oanda.

But the real star of this session is called Tesla. The electric vehicle manufacturer gains 8.5% on Wall Street at the close of the European market. The action is driven by Morgan Stanley which raised its price target to $400 on the stock (compared to 270 currently) impressed by the prospects offered by Tesla’s supercomputer, “Dojo”, which was launched in July.

“We believe Dojo can add up to $500 billion to Tesla’s enterprise value, driven by faster adoption in areas such as robotaxis and SaaS. )”, they write in their note.

JCDecaux at the top of the poster

On French stocks, JCDecaux (+5.8%) was boosted by an increase in recommendation to “outperformance” by Oddo BHF.

Bic (+3.2%), for its part, achieved an encouraging progress update on its Horizon strategic plan, which sets objectives for 2025.

On the small cap side, Biophytis limited its gains to 2.8% after surging by more than 30% in early trading. The biopharmaceutical company has obtained the green light from the FDA to launch its phase III study (last stage of clinical trials before possible marketing) SARA-31 for its potential treatment against sarcopenia.

On other markets, the euro gained 0.4% to 1.7048 dollars. Oil is taking a breather after its recent rise. The November North Sea Brent contract lost 0.4% to $90.27 per barrel, while the October contract lost 0.6% to $87 per barrel.