The Paris Stock Exchange experienced a notable rebound, with the CAC40 index rising 0.6% to 7,755 points, driven by renewed investor interest amid a weakening dollar and tariff speculation. Optimism surrounds the US markets as Trump takes office, while the Euro-Stoxx50 reached a record high. In cryptocurrencies, Bitcoin hit over $108,000, and the controversial ‘Trump Coin’ surged before a decline. Additionally, Air Liquide and Alstom announced significant contracts in the French corporate sector.
Market Update: Paris Stock Exchange Takes a Positive Turn
The Paris Stock Exchange experienced a period of stagnation on Monday, with the CAC40 index hovering around 7,720 points. However, in a remarkable turn of events, it surged by 0.6% to reach 7,755 points within just an hour. This uplift can be attributed to a renewed interest from investors, following a surprising 1% drop in the Dollar, fueled by rumors suggesting a delay in tariff decisions, which may lead to less drastic sanctions than initially anticipated.
Investor Sentiment and Cryptocurrency Trends
While Wall Street remained closed in observance of Martin Luther King Jr. Day—a holiday that coincides with the inauguration of Donald Trump—market participants are optimistic about a potential uptick of 0.7% to 0.8% in US markets for the following day, marking the commencement of the February trading term.
The day is set to be bustling with political developments, as numerous presidential decrees are expected to roll out as Trump assumes office as the 47th president. In Europe, the Euro-Stoxx50 saw a pleasant surprise with a rise of 0.5% to 5,175 points, reaching a new all-time high, bolstered by expectations that Trump’s administration will capitalize on the robust state of the US economy, ultimately benefiting stock performance.
Initially wary of the potential inflationary consequences of the incoming president’s policies, investors are now leaning towards the positive effects of the anticipated deregulation measures. The prospect of a corporate tax reduction from 21% to 15% has also piqued interest among companies.
In the cryptocurrency sphere, enthusiasts are optimistic about the establishment of a supportive institutional framework and increased use of cryptocurrencies for daily transactions. The price of Bitcoin has surged recently, hitting an all-time high of over $108,000, with some analysts predicting a potential climb to $120,000 in the long run.
Additionally, the newly launched ‘Trump Coin’, which gained attention despite being essentially unbacked, saw its valuation skyrocket to several tens of billions before plummeting by 40% following the introduction of a new ‘meme coin’ dubbed ‘Melania’.
In the digital landscape, many are anticipating that Trump will soon issue a decree enabling TikTok to resume operations in the US after its recent Supreme Court ban, possibly through a buyout or partnership, with the app having reopened on Sunday while awaiting an approved acquirer.
As hopes surrounding Trump’s presidency rise, the dollar continues to struggle, affected by a recent decline in bond yields. The greenback is losing ground against several key currencies, including the euro, which has climbed above $1.04, and the Yen, amidst the Bank of Japan’s plans to raise interest rates.
On the bond market, the yield on the German Bund decreased by 1 basis point to 2.4950%, while the French OAT has shown a similar trend, settling at 3.2970%. In London, oil prices are also under pressure, with Brent crude falling by 1% to around $80, while WTI dropped by 1.5% to approximately $76.50, as Trump advocates for a significant boost in oil and gas production.
In the realm of French corporations, Air Liquide announced on Monday that it had finalized contracts with 20 hospitals, just shy of a year after launching its initiative aimed at helping healthcare facilities minimize their carbon footprint. Additionally, Alstom revealed plans to deliver fifteen new-generation automatic metro trains, valued at roughly 210 million euros, to the European Metropolis of Lille, supplementing the 27 trains already ordered. Furthermore, Alstom secured a new contract with the Madrid metro for the provision of signaling technologies to facilitate the deployment of driverless trains.