Paris (AFP)

European stock markets started the week with a fanfare, galvanized by both the words of the Fed chairman and the rise in oil, the hope of progress on a vaccine and the spectacular Franco-German proposal for a European recovery plan 500 billion euros.

From Paris (+ 5.16%) to Frankfurt (+ 5.67%) via London (+ 4.29%), Madrid (+ 4.70%) and Milan (+ 3.26%) Europeans were won over by a certain euphoria on Monday.

This "big rebound" was "largely fueled by the intervention of Jerome Powell at night on the CBS channel", who "decided with his intervention in the more pessimistic tone of last week," stressed to AFP Alexandre Baradez, analyst at IG France.

The president of the American Federal Reserve (Fed) declared that the institution "was not short of ammunition, far from there", which indicates that "if there is need to support even more the economy and the markets ", the American central bank stands ready, he added.

And the proposal made by France and Germany, shortly before the close, of a recovery plan of 500 billion euros in the face of the economic impact of the new coronavirus, which would pave the way for a pooling of debts on the Old Continent, allowed the upward movement to accelerate.

It was also behind a very strong easing of the Italian ten-year rate, which ended on a low in more than a month - to 1.67% against 1.86% on Friday, while the country could be one of the first beneficiaries of this unprecedented mechanism taking the form not of loans to be reimbursed but of direct "endowments" to the European states most affected.

Rising oil prices "also had a (positive) effect on the market," said Baradez.

The price of the reference barrel in the United States thus crossed at the start of the session the symbolic threshold of 30 dollars, a first since March 17, helped by the reductions in production and the prospect of a recovery in demand from as countries deconfigure and revive their economies.

Finally, the announcement of positive data concerning a vaccine project by the American laboratory Moderna against the coronavirus also amply supported the stock market indices.

The rise of which contrasts with economic indicators that are still very bleak. After Germany on Friday, Japan officially fell into recession on Monday for the first time since 2015.

- The oil companies at the party -

In terms of values, the rebound has benefited particularly battered sectors in recent weeks.

In Paris, the air took off, like ADP (+ 13.07% to 80.90 euros) and Airbus (+ 12.23% to 55.34 euros) while an assistance plan to aeronautics must be announced "before July 1" by the French government.

Ditto on the other side of the Channel where Ryanair jumped 15.76% to 9.78 euros.

The automobile also fared well on both sides of the Rhine. In France, Faurecia jumped 11.05% to 32.76 euros, Valeo from 10.38% to 19.42 euros, Renault won 8.70% to 19 euros and Peugeot 6.56% to 12.27 euros. .

On the German side, the manufacturers Daimler (+ 11.34% to 31.18 euros), Volkswagen (+ 8.28% to 131.28 euros) and BMW (+ 7.72% to 50.25 euros) also clearly increased .

Oil meanwhile benefited from the rise in crude prices, the heavyweight of the CAC 40 Total amounting from 7.40% to 33.15 euros while in London, BP took 8.20% to 320.80 pence and Royal Dutch Shell ("B" share) 8.18% to 1,271.80 pence.

© 2020 AFP