The CAC40 ends fairly close to its highs of the day (+ 2.5% to 4,843): it erases half of the 5% lost over the whole of the past week while Wall Street continues the unexpected rise that occurred on Friday evening.
The Euro-Stoxx50 also shows a + 2.75% gain towards 3.223 in the wake of Frankfurt which soars by + 3.2% while Merkel is very alarmist about the increase in Covid-19 cases in Germany and asks for additional ‘tracing’ measures.
The US indices do not disappoint and amplify the gains hoped for in the pre-opening: the Dow Jones gains + 1.8%, the S & P500 + 1.6%, and the Nadsaq + 1.3% (which are added to the + 2.2% Friday).
The New York Stock Exchange had managed to escape in extremis a fourth consecutive week of decline thanks to a rebound out of nowhere, or almost.
Commentators cited promising results from a vaccine developed by Johnson & Johnson (which claims a ‘strong immune response’) but the rebound may have resulted from ‘short’ buybacks 3 days from the end of the 3rd trimester, in the framework of quarterly balance sheets.
Symmetrically, the infection figures in the United States are not declining as much as expected, ‘worries Danske Bank, which stresses that the number of cases is increasing markedly in Europe.
For the Scandinavian bank,
‘Several articles suggest that we could move towards’ light confinement ‘, at least locally, in the face of the resumption of the increase in hospitalizations’, explains the Nordic establishment.
‘In the short term, it, therefore, remains premature to expect a significant rebound in market sentiment in financial centers as long as there is nothing to justify it, whether it is an improvement in the spread of the epidemic, the good news concerning a vaccine or treatment, benevolent measures on the part of the Fed or the establishment of a new budget support plan in the United States, ‘warns Danske Bank.
Under these conditions, investors will closely follow the major economic and political meetings of the week, and in particular, the first debate between Donald Trump and Joe Biden because of the American presidential election, which will take place tomorrow evening.
Trump will be handicapped by the revelation of the lack of payment of taxes for ten years thanks to the attribution of losses suffered in the early 2000s (real estate bankruptcies, especially of casinos) … while he is ‘was elected in 2016 praising his many’ successes’ as a businessman.
Market participants will also be interested in the IHS Markit manufacturing PMI indices, which will fall later in the week, as well as the official figures from the
The only event scheduled for today, the hearing of Christine Lagarde, the President of the ECB, before the Economic and Monetary Commission of the European Parliament should make it possible to take stock of the asset buybacks currently carried out by the institution.
The Euro regains some ground against the Dollar: + 0.2% towards 1.1660.
On the value side, the ‘real estate’ sector finished the race ahead with Klépierre 11.7%, Mercialys at + 9% ahead of the automotive sector with Renault at + 7.1%, Peugeot + 4%.
It was also a good day for the banking sector, with Crédit Agricole at + 5.8%, Sté Générale + 5%, BNP-Paribas + 5.2%.
But it is Arcelor-Mittal who keeps pole position with + 9%.
Veolia (-0.6%) confirms today that Engie (+ 2%) having canceled its board of directors scheduled for September 25, it will submit its improved offer for Suez (-2.7%) at the latest on September 30, 2020.
Total (+ 2.6%) announces that it has entered into an agreement with Petrobras on September 24, 2020, to transfer to it its stake in five exploration blocks located in the Foz do Amazonas basin, 120 kilometers off the coast of Brazil.
Credit Suisse lowered its price target on the Pernod Ricard title (+ 2.7%) on Monday, bringing it down from 165 to 160 euros, due to concerns about the pace of the recovery, which it fears ‘uneven’.
Credit Suisse – which today prefers brewers and bottlers to the detriment of spirits producers – still maintains its ‘outperformance’ opinion on Pernod Ricard.
Oddo BHF maintains its buy recommendation on Saint-Gobain shares (+ 3%), targeting a price target of 41 euros.