(Paris) European stock markets ended the first session of 2023 higher on Monday, bouncing back from the ashes of a catastrophic 2022 for the stock markets, while most other financial centers remained closed.
The Paris Bourse rose by 1.87%, Milan by 1.90% and Frankfurt by 1.05%. In 2022, these places lost around 10%, their worst year since 2018.
For its part, London remained closed, as did Wall Street.
The only leading publication on Monday, the manufacturing PMI leading activity indicator in the eurozone was in line with expectations, down. That of France contracted a little less than expected, that of Germany a little more.
The headlines will intensify with the release throughout the week of inflation figures for several eurozone countries and the monthly US jobs report on Friday, which will be the highlight of the week.
The publication on Wednesday of the minutes of the last monetary policy meeting of the American central bank (Federal Reserve, Fed) will also attract the attention of investors.
“From the point of view of central banks, we have the impression that the message is clear, we remain on a monetary tightening trend”, commented Florian Allain, manager at Mandarine Gestion.
The change in direction of US monetary policy, “the pivot of the Fed, will arrive soon” and “by May or June, rates will be at 5% or 5.25%”, a peak which should mark the end rate hikes, believes Florian Allain, who is not “particularly pessimistic” about the evolution of the markets in 2023.
On the bond market on Monday, sovereign rates in Europe fell by more than 10 basis points on long-term maturities, after ending 2022 at their highest in more than 10 years, in France and Germany. The French 10-year fell to 2.97% around 12 p.m. (Eastern time), against 3.09% on Friday at the close.
Losers become winners
Some titles that had suffered particularly badly in 2022 rebounded to start the new year. The German energy company Uniper gained 20.17%, after having melted 93.81% last year. Fellow real estate giant Adler gained 13.01% after an annual fall of 87.66%.
In the technology sector, Zalando rose 5.80%, compared to a decline of 53.46% last year. Atos climbed 20.01% (-75.90% in 2022) on news reports of interest in its cybersecurity business.
On the automotive side, Volkswagen gained 3.11% (-23.85% in 2022) and Faurecia 8.49% (-62.73% in 2022).
Monte dei Paschi reassures
The Italian bank Monte dei Paschi di Siena (MPS) assured on Monday that thanks to “the successful conclusion” of its capital increase of 2.5 billion euros, the “significant doubts” on the continuation of its activity had been removed. .
These statements aimed at reassuring investors caused the stock to soar on the Milan Stock Exchange, where it rose by 6.52%.
Petrobras boss unwelcome
Petrobras shares fell 5.67% in Sao Paulo, after the appointment of Senator Jean Paul Prates as president of the public oil company. The appointment of this senator from Brazilian President Lula’s Workers’ Party still has to be approved by the group’s board of directors.
European gas at its lowest since the war in Ukraine
On the natural gas side, the European benchmark, the Dutch TTF contract for delivery in February, rose 3.73% to 79 euros per megawatt hour around 11:50 a.m. (Eastern time), after hitting a low of 70 .30 euros, a level not seen since the outbreak of the war in Ukraine at the end of February.
The oil market was closed for the two reference varieties, Brent from the North Sea and American WTI.
The euro fell 0.49% against the dollar, to 1.0653 dollars, around 11:50 a.m. (Eastern time).
Bitcoin was up 0.76% at $16,730.