(News Bulletin 247) – The Paris Stock Exchange closed in the green for the first time this week, reassured by the latest comments from the deputy governor of the Bank of Japan. The CAC 40 closed up sharply by 1.9% this Wednesday evening.

The Paris Stock Exchange is showing a better face to investors after four consecutive sessions in the red. The CAC 40 confirmed its rebound, gaining 1.91% to 7,266.01 points at the close on Wednesday evening.

The Paris index has regained some of the ground lost in recent sessions, allowing it to move away from its lows of mid-November.

An accommodating tone from Japan

The mood on the markets is much calmer than at the beginning of the week, thanks to the latest statements by the deputy governor of the Bank of Japan. He indicated this Wednesday morning that there will be no “rate hike” in a context of instability in the financial and capital markets. These accommodating announcements have caused the yen to fall again, which is good news for Japanese export companies.

Governor Uchida’s statements have “calmed some of the fears” [des investisseurs] regarding the possibility of further unwinding of carry trade positions and led to a weakening of the yen,” said Patrick O’Hare of Briefing.com.

The specialist adds that “the concerns about a recession in the American economy were a little exaggerated.” He recalls that the American Federal Reserve (Fed) of Atlanta published its growth projections for the current quarter on Tuesday. And according to its GDPNow index, GDP in the United States should grow at an annualized rate of 2.9% in the third quarter.

Investors are therefore reassessing downwards the risks of a recession in the United States, following the statistics published by the regional branch of the American Federal Reserve. On Wall Street, this data has had a small effect, and the American indices are extending their rebound started the day before. At the close of the European markets, the Dow Jones is up 0.7%, the S&P 500 and the Nasdaq are up more than 1%.

Cyclical values ​​rebound

In terms of business news in Europe, a few publications livened up the session, including that of the Danish laboratory Novo Nordisk, which plunged by 6.7% after lowering its operating profit target for 2024.

In Paris, Teleperformance gained 3.7% after having lost nearly 15% over the last four sessions. Cyclical stocks are also benefiting from this return to calm on the markets. Schneider Electric gained 3.3%, while Totalenergies (+2.9%) benefited from the rebound in oil prices. The latter are driven by disruptions in a major oil field in Libya and tense geopolitical news in the Middle East.

The October contract on North Sea Brent rose 2% to $78.02 a barrel, while the September contract on WTI listed in New York appreciated 2.2% to $74.80 a barrel.