Paris (AFP)

The Paris Stock Exchange finished up 1.19% on Wednesday, driven by the prospect of the Democrats stealing the two senator's seats in Georgia, facilitating the implementation of Joe Biden's economic stimulus program in the United States.

The CAC 40 index rose by 66 points to 5,030.60 points.

The day before, it had finished down 0.44%.

"The markets want to go up," said AFP Alexandre Neuvy, head of private management at Amplegest.

American elections, Brexit, vaccine: "the less uncertainty there is, the more the markets love", he explains.

Investors have sided with the looming victory for Democrats in Georgia.

Two new senators would allow Democrats to match the number of Republicans in this assembly.

However, in the event of a tie, Vice-President Kamala Harris can tip the votes in her direction.

Already in the majority in the House of Representatives, the Democrats will have an easier time passing Joe Biden's program.

"The good news is the prospect of a much bigger stimulus package," says Neuvy.

The big winners are therefore in particular the stocks most linked to economic activity, such as banks or those in construction.

“More generally, all the stocks slaughtered during the health crisis are regaining color. Sector rotation continues,” continues the manager.

This momentum was also seen on sovereign interests: France's 10-year rate rose four basis points to -0.31%.

Joe Biden's program also includes elements more likely to displease the market, in the area of ​​taxation and regulations.

A victory for the Democrats thus makes more "probable" the rise "of the corporate tax rates from 21% to 28% and of the income tax" of the richest people, writes Randeep Somel, manager at M&G.

However, faced with the still precarious economic situation, "these measures will not be the priority at the beginning", notes Mr. Neuvy, while the Senate will still be partially renewed in two years.

Banking and financial stocks were the big winners of the day.

Societe Generale climbed 6.83% to 17.96 euros, BNP Paribas 5.52% to 45.29 euros, Crédit Agricole 4.05% to 10.67 euros.

The insurer Axa gained 3.92% to 20.40 euros.

Other values ​​closely linked to economic activity have returned to favor, such as Saint-Gobain which jumped 4.52% to 40 euros or Vinci from 3.84% to 84.44 euros.

Beyond cyclical stocks benefiting directly from the prospect of new fiscal stimulus, companies that suffered in 2020 have benefited from renewed interest.

Unibail-Rodamco-Westfield took 3.34% to 64.94 euros, Veolia 3.15% to 20.65 euros or Danone 0.88% to 55.08 euros.

© 2021 AFP