The Paris Stock Exchange resumed on Wednesday, reassured by statements from the European Central Bank (ECB) after an unexpected meeting on borrowing conditions in the euro area. The CAC 40 recovered 1.35% to 6,030.13 points after six sessions of decline. The ECB instructed its teamsspeed up“design of a new tool”antifragmentation»Combat excessive interest rate spreads between the northern and southern eurozone countries.
Then the institution promised to apply. “some flexibility in reinvestment»Bonds held under its emergency program launched during the pandemic (PEPP). These announcements, made at the end of an exclusive meeting of the Board of Governors, havecalmed the market, because it means that the ECB seeks to fight inflation, but takes into account what is happening in the financial market, and in particular borrowing ratescommented Ilana Azuelos-Bossard, Deputy Director of Kiplink Finance.
“ECB is concerned about rising lending rates, especially in the most indebted countries such as Italy“- adds Ilana Azuelos-Bossar. Indeed, the bond market has been very busy for several days. During the week on Tuesday, the level of French ten-year debt rose from 1.8% to 2.4%, and Italian – from 3.4% to 4.18%. The same trend is on the sidespread“, The gap between the rates of one country and another control country, in this case Germany for Europe, which has clearly increased. Which suggested that “it seems that the specter of fragmentation of eurozone ponds is forming“, – emphasizes the analyst Kiplink Finance. Interest rates fell sharply after the ECB’s statements on Wednesday. At the same time, investors are still waiting for the evening of the statements of the US Federal Reserve (Fed) to strengthen monetary policy. The possibility of raising the rate by 50 basis points has not completely disappeared from radar, but speculation of an increase of 75 basis points or even 100 points has increased in recent days after the announcement of accelerating consumer price inflation in the United States in May.
Finances are rising
Shares in the banking and insurance sectors resumed after significant suffering earlier in the week due to fears of a recession. Axa rose by 2.97% to € 23.06, Crédit Agricole by 2.48% to € 9.05, BNP Paribas by 2.01% to € 48.29 and Société Générale by 2.86% to € 23.06 euro.
EDF on the rise
EDF took 3.43% to 8.44 euros. The renationalization of EDF to enable it to build new nuclear reactors has not yet been decided, but it is “it is possible“Energy Minister Agnes Pannier-Runache said on Tuesday.
The Central CSE (CSEC) EDF also believed that EDF did not “will not live to the end of the yearif the government maintains measures introduced as part of its tariff shield to curb the increase in household accounts.
Green acquisition in TotalEnergies
TotalEnergies (-1.02% to € 53.53) has announced that it has acquired a 49% stake in Compagnie des Bois du Gabon (CBG) and its 600.00 hectares of forests, from which the oil and gas group wants carbon credits to offset its greenhouse gas emissions. gases.