Market: Driven by a better-than-expected indicator in Germany and TotalEnergies, the CAC 40 regained some ground

(BFM Bourse) – The Paris bourse started the week slightly higher, driven by oil stocks, including heavyweight TotalEnergies and a better-than-expected indicator in Germany. On Wall Street, the trend is more uncertain. The CAC 40 snagged 0.3% on Monday evening.

The Paris stock market regained some color on Monday after a weekend marred by uninviting statements from the presidents of the Federal Reserve, Jerome Powell, and European Central Bank, Christine Lagarde.

The CAC 40, which rose 0.6% mid-session, closed up 0.3% at 6,473.29 points. The small decrease in the speed of the Parisian index at the end of the course must be related to the unsettled opening of the American indices. At the close of European markets, the Dow Jones was almost steady at 32,903.80 points, while the Nadsaq lost more than 1%.

Monday’s trend was partly supported by a better-than-expected indicator in Germany, namely the Ifo, which measures business confidence across the Rhine. The index for December stood at 88.6 after 86.4 in November, well above the consensus among economists polled by Reuters, which was 87.4.

“The further increase in Ifo’s business climate index in December and the general improvement in surveys over the past two months suggest that the outlook for the German economy has improved,” notes Capital Economics. “However, we still believe that Germany will experience a recession, even if it will be less deep than we initially feared,” the economic think tank continues.

The market is also driven by shares linked to oil: Oil services group Vallourec rose 3.25%, TotalEnergies 1.8%, while Technip Energies rose 0.4%.

The prices of black gold, they go forward. The February North Sea Brent contract rose 1.45% to $80.19 a barrel. barrel, while WTI for January delivery rose 1.8% to $75.83 a barrel. The United States announced Friday evening that it would begin buying back oil to replenish its strategic reserves.

Elior gives himself vent on his debt

Elior fell 8.7% after securing an adjustment to its debt obligations from its creditors.

Virbac fell 5.4% after announcing that its restated current operating profit margin was expected to be between 13% and 14% at constant exchange rates next year, compared with an expected figure of between 14% and 15% this year.

Innate Pharma increased by 24.2% thanks to the extension of the partnership with Sanofi in the development of specific antibodies, which resulted in a first payment of 25 million euros.

Danone gains 1.7% led by Royal Bank of Canada, which moved from “sector perform” to “outperform” on value.

Piscines Desjoyaux fell 8.3% after reporting poor annual results.

In the foreign exchange market, the euro rose 0.3% against the dollar to $1.0618.

Sabrina Sadgui – ©2022 BFM Bourse

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