The Paris Bourse rebounded 1.36% Tuesday in early trading, the day after a sharp drop caused by concerns about the solvency of Chinese real estate giant Evergrande, and before the start of the meeting of the US Federal Reserve.
The flagship CAC 40 index rose 88.56 points to 6,544.37 points around 10:00 a.m. The day before, it had finished sharply down 1.74%.
After a tumultuous Monday, the time has come for appeasement on the Parisian coast. If fears around the Chinese real estate giant persist, the indices once again show “their resilience in this type of situation”, write analysts at Saxo Bank.
The Hong Kong Stock Exchange also stabilized on Tuesday as the chairman of the real estate giant told staff that his group “would soon emerge from its darkest days,” state media reported.
The solvency of Evergrande, which is drowning in debt of $ 300 billion, is not the only doubt that crossed the markets on Monday.
The race against time is launched in the American Congress, to find an agreement on the ceiling of the debt and to prevent the United States from defaulting, which would have serious consequences on the American economy, but also on the world.
However, “at this stage, we do not consider that these risk factors”, namely the US debt ceiling and the Evergrande crisis, “could derail in the long term the US and European markets, which still benefit from the strong support of the European Union. Fed and the ECB “, details Tangi le Liboux, analyst at Aurel BGC.
The US Federal Reserve (Fed) is holding its monetary meeting from Tuesday until Wednesday. Investors expect it to specify the terms and timing of the gradual reduction in its support to the financial market, through massive asset buybacks.
President Jerome Powell started this “tapering” at the end of August, but the markets don’t think it will start until November.
Vivendi dives, Universal leaps
Vivendi shares plunged 13.58% to 11.26 euros on the day of the IPO of its former subsidiary Universal Music Group. This, listed in Amsterdam, jumped nearly 35% during the first exchanges compared to its reference price set Monday.
Luxury stocks, which are sensitive to current events in China, were at the top of the CAC 40 index. LVMH rose 2.25% to 632.70 euros, Hermès 1.59% to 1,278 euros and Kering 1. 11% to 635.70 euros.
- Euronext CAC40