The Paris Bourse ended again in the green (+ 0.39%) Tuesday, continuing to move to its highest in 12 years in a still buoyant climate related to commercial progress and good macroeconomic indicators.
The CAC 40 index gained 22.59 points to 5,846.89 points, a new high since October 31, 2007, in an average trade volume of 3.4 billion euros. The day before, it ended up 1.08%.
The Parisian coast remained anchored in balance a good part of the morning before taking a little height.
“There is a very big optimism surrounding the market that can pull the odds up,” summarized AFP Andrea Tuéni, an analyst at Saxo Bank.
“The progression is constant but not linear”, the index advancing step by step, which probably reflects “a little doubt and hesitation to launch headlong” in a market at valuation levels already very high, has he noted, however.
The enthusiasm of investors was mainly motivated by the hope that a step agreement between the United States and China in the trade dispute between them for more than a year.
Several statements by US officials in recent days have suggested that a partial trade agreement between the two countries could be signed in the coming weeks. China also sent signals that helped maintain a positive atmosphere.
“Preparations around the meeting” between the leaders of both sides are underway, “Beijing has submitted a list of US cities” can accommodate the latter and “even if we have not yet effective signature, we still elements and concrete news on progress, “said Tuéni.
The publication of a better than expected US indicator also contributed to the buoyant wind blowing on the equity markets. US service activity growth accelerated sharply in October and more than expected, after falling to its lowest level in three years in September, according to the ISM trade association.
In China, on the other hand, activity in services was the lowest in eight months in October.
In addition, the US trade deficit narrowed sharply in September as a result of lower imports of goods from China, according to the Commerce Department.