The Paris Bourse cajoled by positive remarks (+ 1.79%)


The Paris Bourse ended on a high note on Friday (+ 1.79%), supported by both reassuring remarks on Sino-US trade negotiations and a renewed interest in the banking sector.

The CAC 40 index gained 90.67 points at 5.153.19 points, in a volume of trade fed, of 4.42 billion euros. The day before, it had finished a slight decline of 0.23%.

Over the past week, it has risen by 3.86%. Its gains since January 1st amount to 8.93%.

After the first steps to balance, the Parisian coast has gradually gained ground, even approaching the bar of the 2% increase at the end of the session.

"There have been two catalysts for the CAC 40: the reassuring words about trade negotiations with China and the banking sector," said More Bank Philippe Cohen, manager at Kiplink Finance.

"The banking sector has been supported by the words of a member of the Executive Board of the European Central Bank (ECB) on a very accommodating policy with banks," he said.

The ECB is considering a new round of long-term, low-rate loans to euro-zone banks, Benoit Coeuré, a member of the executive board of the institution, said on Friday.

On the commercial front, "it's going in the right direction and there is a will on both sides," says Cohen.

Donald Trump was optimistic Friday on the prospect of ending the trade war against Beijing and raised the possibility of extending the truce beyond March 1 before hitting Chinese imports of heavy tariffs.

He said he will meet his Chinese counterpart Xi Jinping, after holding a new round of talks in Washington next week, to "face-to-face directly the remaining problems."

A downside however about the wall on the Mexican border: Donald Trump announced Friday that he would declare the "national emergency", an exceptional procedure to finance this wall, opening a fierce court battle with his opponents.

In the afternoon, investors welcomed several important US statistics.

Consumer confidence in the United States, as measured by the University of Michigan survey, rebounded sharply in February after being depressed by the administrative "shutdown" in January.

Manufacturing activity growth in the New York area rebounded in February to a level slightly above analysts' expectations.

Prices for products imported into the United States fell again in January for the third month in a row, according to data from the Labor Department released Friday.

– Regain of interest for the banking sector –

The banking sector, whose results are however subdued, has supported the Paris market thanks to the words of the ECB: BNP Paribas gained 4.19% to 42.11 euros, Crédit Agricole rose 4.04% to 10.20 euros and Societe Generale 3.20% to 24.55 euros.

Vivendi took the lead in the CAC 40 index with a jump of 5.63% to 24.01 euros, after surprising with results above expectations for 2018, thanks to a good performance of its subsidiary Universal.

TF1 climbed 2.20% to 6.74 euros. The television group is preparing for a year rich in developments for the sector.

Casino gained 3.62% to 45 euros. The distributor announced the sale for 42 million euros of several major deficit areas, both integrated and operated by franchisees, Lidl and Leclerc stores, during the first half.

EDF has suffered (-5.76% to 13.99 euros), investors worried about a forecast for EBITDA (EBITDA) that could mean a virtual stagnation.

ADP took 3.94% to 169 euros, supported by a comfortable growth of its net profit of 6.9% in 2018, thanks to increasing numbers of passengers and a little more spend in the shops of Paris airports.

Euronext pegged 0.28% to 53.60 euros after a profit below expectations in 2018, due to exceptional items, but a performance of the group in 2018 which remained solid.

Eutelsat was affected (-5.96% to 17.68 euros) by a net profit down 4.8% in the first half of its year-off year, to 150.4 million euros, even if it confirmed its objectives for the current year.

Bolloré rose 6.68% to 3.70 euros, thanks to a 26% increase in revenue for the 2018 financial year to 23.02 billion euros, inflated by the integration of Vivendi.

Pan / ref / Lys