The flagship CAC 40 index gained 76.32 points to 7,220.01 points. On Monday, it had closed up 0.45%.

On the Parisian market, the rebound of the previous day continues, "we agree to talk about buying cheaply" after the declines of last week, notes Eymane Cherfa, financial analyst of Myria AM.

The market was reassured by the announcement of the extension of measures to support the real estate sector in China, which is drowning in debt, "which could translate into further measures in favor of a rebound in economic activity," said Michael Hewson of CMC Markets.

However, "risk-taking is limited on the equity market on Tuesday before the publication of inflation in the United States on Wednesday and the launch of the publication of corporate results," summarizes Eymane Cherfa.

The US government will publish on Wednesday the consumer price index (CPI) for June, expected to rise 0.3% on the month, to 3.1% against 4% over twelve months, a significant slowdown.

The indicator is expected by the markets, in the wake of the monetary policy of the US central bank.

If the markets are now convinced that the Fed will raise its key rate by a quarter point on July 26, despite its pause during the previous meeting, they are more undecided on what the Federal Reserve (Fed) will do next.

In addition, at the end of the week, the first company results will be published.

On Monday evening, the Bank of France reported a sharp slowdown in price increases for companies, according to its monthly survey of about 8,500 companies between June 28 and July 5.

"The Bank of France explains that only 8% of companies raised their prices in June (in industry, editor's note), a low since 2021, and that 6% of them lowered their prices, a peak for three years," said Eymane Cherfa.

"These data also demonstrate a normalization of future margins," the analyst continued.

Luxury driven by China

Luxury values were on the rise, with new boosts from the Chinese authorities to revive the economy, the country being an important market for the sector. Hermès closed up 2% to 1,914.20 euros, LVMH gained 2.21% to 849.30 euros and Kering 1.56% to 488.25 euros.

URW takes the lead of the CAC 40

Unibail-Rodamco-Westfield, the main real estate value of the CAC 40, also exposed to China, closed at the top of the index, up 4.19% to 51.24 euros.

Casino and Rally down

Economy Minister Bruno Le Maire deemed "solid" the two takeover offers of the distributor in financial difficulty Casino, without taking sides, simply indicating that "the State will be vigilant on employment" and on the maintenance of the "headquarters in Saint-Etienne", Tuesday during questions to the government.

Casino's share price closed down 0.66% to 3 euros, and its parent company, Rallye, ended down 7.77% to 90 cents.

© 2023 AFP