The flagship CAC 40 index rose 0.63% or 44.41 points to 7,122.35 points around 09:50 (07:50 GMT). The day before, it had risen 0.90%, but not enough to make up for Friday's losses created by a slight wave of panic around the financial health of Deutsche Bank.

Investors' anxiety about banks eased with the arrival of a buyer for Silicon Valley Bank (SVB), which went bankrupt in early March.

John Plassard, investment specialist at Mirabaud, notes that "politicians and regulators do (almost) everything to reassure the financial community".

The rebound of European banking stocks continues Tuesday with increases of 1.89% for BNP Paribas, 0.72% for Société Générale, 0.90% for Crédit Agricole and 1.71% for the insurer Axa.

Market participants are gradually returning to their favourite topic: the evolution of monetary policies and the risk of recession they pose to economies.

On this theme, the speeches of the president of the European Central Bank (ECB) Christine Lagarde, as well as the speech of an official of the US Federal Reserve will be scrutinized on Tuesday. Before the publication at the end of the week of inflation figures in the euro zone and the United States.

"The inflation data due on Thursday and Friday is a crucial headache for the European Central Bank, which has been facing a dilemma since the banking crisis. Only when core inflation falls significantly will it be able to adjust its draconian monetary regime and relieve banks," said Jochen Stanzl, an analyst at CMC Markets.

In France, continued growth has reduced public debt, which has fallen to 111.6% of gross domestic product (GDP) in 2022, while the public deficit has declined to 4.7% of GDP, better than the government's target, INSEE said Tuesday. Sign of a "resilience" of the economy according to the Minister of the Economy Bruno Le Maire.

On the other hand, the business climate deteriorated slightly in France in March.

Engie questioned

Shareholders of Engie (+0.49% to 13.91 euros) asked the French energy giant to publish more details on its climate plan to better assess whether it aligns with the objective of limiting warming to 1.5 ° C compared to pre-industrial levels.

Valeo at the forefront

The automotive supplier Valeo is the French industrial group that has filed the most patent applications in 2022, says the annual barometer of the European Patent Office (EPO) published on Tuesday.

Its share rose 2.06% to 18.13 euros.

© 2023 AFP