The Paris Stock Exchange ended in strong rebound on Monday (+ 4.61%), relieved mainly by signs of a slowdown in deaths linked to the coronavirus in Europe.
The CAC 40 index gained 191.56 points to 4,346.14 points, erasing in one session the loss made over the past week. On Friday, it finished down 1.57%.
“In the current maelstrom, the market clings to the slightest positive indicator” and “the positive news is the plateau or decline in the number of deaths and people infected” in Europe by the coronavirus pandemic, explains to the AFP Régis Aubert, equity manager at Financière Arbevel.
“These declining figures almost entirely explain the upward movement of the market,” he continues.
Encouraging signs have appeared in Spain, Italy and France, where a downward trend in the number of coronavirus-related deaths has been recorded. These countries are the most affected in Europe by the pandemic which has killed at least 70,000 people worldwide, including more than 50,000 on the Old Continent.
Other signs of easing, Austria presented a plan of relaxation of the restrictions in force against the epidemic of coronavirus, while Norway for its part considered that the epidemic was “under control” on its soil.
Iran is also witnessing “a slow and gradual” decline in contamination, according to official figures released Monday.
In this context, “some investors want to take on risk, wanting to hear that life will resume a somewhat normal turn within a reasonable horizon”, underlines Mr. Aubert.
Especially since market players consider that States and central banks “have done a lot” to counter the violence of the air gap which is shaking the economy, even if, ultimately, “the economic situation will depend on the duration of confinement “.
– Rebound of the most battered values -
In Japan, Prime Minister Shinzo Abe announced a massive plan to support the country's economy of 915 billion euros.
However, according to the specialist, this momentum on the markets could be interrupted in the event of bad figures in the United States, where the health crisis is far from being mastered.
The federal administrator of public health services in the United States also warned Sunday that this week could be “a time like Pearl Harbor, like September 11, except that it will not be located.”
On the securities front, the sectors most affected by the coronavirus crisis, that is to say the most sensitive to economic conditions, were the first beneficiaries of the rebound in the index.
Raw materials have thus recovered, like ArcelorMittal (+ 10.1% to 8.64 euros) or Aperam (+ 5.18% to 20.19 euros).
Within the automotive sector, Renault increased by 14.17% to 18.05 euros, Peugeot by 8.97% to 12.87 euros.
In terms of air transport, Airbus recovered by 8.13% to 53.53 euros and Aéroports de Paris by 4.90% to 88.9 euros.
Financial stocks also jumped: Natixis appreciated by 13.44% to 2.09 euros, Wendel by 12.20% to 74.5 euros, Coface by 9.57% to 5.44 euros. Societe Generale rose by 9.16% to 13.97 euros.
Axa won 5.74% to 14.77 euros while the CEO of the insurer, Thomas Buberl, argued for the establishment of a pooling mechanism to create a “pandemic insurance plan” , capable of responding to a crisis like that of Covid-19, in an interview with the Journal du Dimanche.