Paris (AFP)

The Paris Stock Exchange continued its rebound on Tuesday, the day of the US presidential election, as investors returned to buy cheap stocks after the drop last week.

The CAC 40 index rose 86.60 points to 4,779.74 points at 12:45 p.m.

The day before, he had finished with a gain of 2.11%.

After dropping 6.4% last week, the CAC 40 continues to rebound, like other European markets like Frankfurt (+ 1.61%) and London (+ 1.58%).

US markets were also up sharply Tuesday in futures contracts, that of the extended S&P 500 index advancing 1.17%.

"This could be a sign that investors, having already anticipated the latest containment measures in Europe, now have their eyes on the end of the crisis," said Pierre Veyret, technical analyst at ActivTrades.

This rebound could "be disrupted by the major events of this week", he continues.

The main one is the US presidential election which takes place on Tuesday.

The first results will be declared Wednesday in Europe but "the main concern relates to an uncertain or contentious outcome," notes Michael Hewson, analyst at CMC Markets.

If former Vice President Joe Biden is given the favorite against Donald Trump in national polls, the gap is close in several key states and the final results may not be known quickly.

The rest of the week will also be busy, with the outcome of a US Federal Reserve meeting on Thursday and the US monthly employment report on Friday.

"This increase indicates that there is a lot of money on the side, ready to ride a blue wave", namely an unchallenged victory for the Democrats allowing a rapid implementation of a massive stimulus plan, believes Stephen Innes, Axi analyst.

“Hopefully Wednesday won't be a wildfire,” he adds.

BANKS ARE SOAPING THANKS TO BNP

BNP Paribas climbed 6.47% to 33.15 euros after the publication of its results, with a slight decline of 2.3% of its net profit in the third quarter over one year.

Societe Generale also rose 5.18% to 12.75 euros and Crédit Agricole 4.76% to 7.31 euros.

On Monday, these three banks had already made strong gains.

INDUSTRIALS LESS FEARED BY CONTAINMENT

Industrial stocks continued to advance in the wake of good indicators in China and the United States.

Saint-Gobain gained 2.83% to 35.96 euros, Safran 5.05% to 96.16 euros.

The values ​​of the construction industry in London benefited from the rebound of the pound and the fact that the sites will be able to continue during the new confinement in England.

Taylor Wimpey took 3.87% to 112.80 pence, Barratt 3.05% to 510.00 pence and Persimmon 2.85% to 2,394.32 pence.

© 2020 AFP