The Paris Stock Exchange opened up 0.51% this week, continuing the rebound from the previous week. The results of the German federal election are reassuring. At the same time, keep an eye on Evergrande’s situation in China.
The flagship CAC 40 index rose by 34.12 points to 6,672.58 points around 9:15 in the morning. On Friday, it closed down 0.95% to 6,638.46 points, but rose 1.04% every week.
“There is no bad news this weekend, either in the German federal election or in the Evergrande legend,” said the debt-laden Chinese real estate giant,” said Oanda analyst Jeffrey Halley.
In Germany, the vote “in the end came to an uncertain result, no one was surprised,” Halle said.
According to the first interim official result published on the Election Commission website on Monday morning, the center-left of the SPD and its leader Olaf Schultz won 25.7% of the vote, slightly ahead of the conservative CDU-CDU d’Armin Laschet, with a score of 24.1%, a record low.
Both parties expressed their hope that the future alliance could be established “before Christmas.” In Frankfurt, the Dax index also opened up 1.07%.
In China, although part of its 260 billion euro debt was delayed for the first time, “the market seems to soon believe that Evergrande’s situation is controllable” and the consequences “will not affect China’s borders.” China”, analysts estimate.
At the beginning of last week, concerns about the inability to repay huge sums caused the market to plummet, and European prices fell to a two-month low before rebounding sharply.
On the other hand, investors are paying attention to the price increase of certain commodities.
Swissquote analyst Ipek Ozkardeskaya recalled: “The rapid increase in oil prices also means that inflation is under additional pressure,” because the central bank observes the pace of price increases very carefully to determine adjustments in its monetary policy process.
TotalEnergies and Safran join forces
French group TotalEnergies (up 1.02% to 40.11 euros) and Safran Group (up 1.49% to 113.04 euros) announced on Monday that they have established a “strategic partnership” to develop the use of aviation fuel (SAF) to reduce carbon emissions . The footprint of air transport.
Plastic Omnium lowered the target, and its name followed
As the semiconductor shortage will drag down global car production in the second half of the year, the automotive supplier Plastic Omnium dropped 2.55% to 22.92 euros after announcing a reduction in its 2021 financial target.