Paris (AFP)

The Paris Stock Exchange continued to progress widely Monday at mid-session (+ 1.73%), placing its hopes in the confirmation of a rapid economic recovery and putting aside health concerns.

At 12.50 p.m., the CAC 40 index rose from 86.60 points to 5.093.74 points. On Friday, it fell 0.84%, which did not stop it from gaining 1.99% for the whole week.

The Parisian rating opened up more than 2%, following the strong growth of the Asian stock markets on Monday, before stabilizing a little below this threshold.

Wall Street is set to open comfortably in the green after a three-day weekend due to National Day.

"The dynamic of risky assets remains strongly bullish despite the continuous rise in cases of coronavirus over the weekend," said Pierre Veyret, technical analyst at ActivTrades.

Markets continue to ride the wave of growing global macroeconomic indicators, which are regularly better than expected. Thus, American employment again surprised Thursday, with record creations and an unemployment rate 1.5 points lower than forecast.

"The good news is that the latest data continues to suggest a V-shaped recovery," where the economy is rapidly returning to its pre-crisis level, said Neil Shearing, chief economist at Capital Economics. "The bad news is that maintaining this rate of recovery will be much harder from now on," he nuances.

And if the market anticipates a rapid recovery, "it increases the risk of further declines and mood swings" if hopes are not realized, said Milan Cutkovic, analyst at AxiCorp. Especially since the period of corporate results begins this week.

The hope of a rapid recovery "puts health considerations in the background," notes Franklin Pichard. However, they "raise concerns with the increasing measures of containment."

In addition to restrictions reinstated in several states in the southern United States, other areas have been reconfigured in Europe, such as the city of Leicester in England or a coastal region in Galicia, in the northwest of Spain.

The epidemic, which has killed more than 530,000 people worldwide "is still far from being controlled and is likely to have a lasting impact on the economic rebound", warns Mr. Pichard.

The pandemic is still particularly active in Iran, which surpassed its record for the daily number of deaths on Sunday, in Latin America where Chile crossed the threshold of 10,000 dead, but also in India which recorded 25,000 new infections in 24 hours, its record.

In the United States, the country most affected, more than 57,000 new cases were identified Friday, also a record, before the independence celebrations over the weekend.

In terms of indicators, investors await the index of activity in ISM services in the United States.

In Germany, industrial orders in May rebounded moderately, growing less quickly than expected after the April plunge.

- Bank and automobile on the front -

In terms of values, all the CAC 40 was evolving in the green with the exception of Wordline (-0.49% to 77.90 euros) and Teleperformance (-0.09%) at 228.30 euros.

Cyclical stocks, the most sensitive to the economic situation, led the dance, starting with the banks: BNP Paribas jumped 3.75% to 37.64 euros, Societe Generale 4.76% to 15.99 euros and Crédit Agricole from 3.03% to 8.98 euros.

The automobile was also in good shape: Renault advanced 3.59% to 23.08 euros and Peugeot 3.18% to 14.75 euros.

Unibail-Rodamco-Westfield rose 4.38% to 53.36 euros.

SoLocal collapsed by 21.19% to 0.13 euro, the day of its resumption of trading, after having found Friday a refinancing agreement with its main creditors, based in particular on a capital increase.

fs / pan / spi

© 2020 AFP