The Paris Bourse is banking on recovery and sets records

The Paris Bourse on Wednesday set a third record in as many sessions in 2022, investors favouring companies that should be favoured by the reopening of the economy in the coming months.

The flagship CAC 40 index took 58.96 points, or 0.81% to 7,376.37 points, a new record at the close. In session, he reached 7,384.86 points, a new high as well.

The day before, it had finished up 1.39%.

The Parisian odds opened at a level close to equilibrium before advancing at a steady pace throughout the day.

"The theme of this beginning of the year is the rise in interest rates", explains Alexandre Baradez, head of analysis at IG.

Investors have left Omicron behind, despite the explosion in the number of cases in recent weeks. They are convinced that its lower danger, according to preliminary studies, will allow governments to manage the crisis without too many restrictions on economic activity and to get out of it quickly.

As a result, attention is now on the US Federal Reserve, which will publish the report of the discussions of its last monetary policy meeting in the evening.

With galloping inflation and a job market now close to its pre-pandemic level, the Fed assured the markets at the end of 2021 that it would increase its key rates, the main tool to curb price increases.

In the bond market, US bonds climbed earlier in the week, with the 10-year hitting 1.68%.

"There is a sectoral rotation, with growth stocks, like technology, which go down, while those on the reopening of economies, like industry, banks, tourism, the automobile, progress" , notes Mr. Baradez.

Tech companies need low rates to support their high valuation, their significant investments and their growth prospects.