The Paris Stock Market closed up and pinning its hopes on the Fed

The Paris stock market closed sharply higher on Monday (1.54%), nourishing the hope that the U.S. Federal Reserve (Fed) continued its monetary policy to support the economy at its next meeting on Tuesday and Wednesday. The CAC 40 index took 58.50 points 3863.66 points in a low trading volume of € 2.6 billion. Friday, he nibbled 0.19%. Other European markets, Frankfurt gained 1.08% and 0.35% London. Furthermore, the Eurostoxx garnered 1.33%. The Paris stock exchange, which has evolved in the green throughout the session, briefly crossed the threshold of 2% in the afternoon, supported by a dynamic opening on Wall Street. "After four consecutive weeks of decline," says Michael Hewson, analyst at CMC Markets, "European markets started the week off right before the Fed meeting." They "assume that the Fed may revise down its economic forecast," which would push the prospect of a slowdown in its ultra-accommodative policy, dreaded by operators, says the analyst. "Although no policy change is expected, the ability of the Fed Chairman Ben Bernanke to effectively communicate the strategy of the Fed to slow [the pace of asset purchases, ed] will be crucial to determine whether the volatility will persist or not the markets, "explained economists Credit Agricole CIB. Side economic indicators, the agenda was not provided, the surprise of the manufacturing activity in the New York area in June with his side bounce slightly reacted investors. Among the values, the heavy weight of the Paris stock exchange performed well in the image of Sanofi (2.62% to 82.57 euros), Total (2.28% to 38.3 euros), Axa ( 2.59% to 15.85 euros) or Danone (2.75% to 58.22 euros). France Telecom has finished top of the CAC 40 (3.08% to 7.59 euros). The Board of Directors of Orange maintained at the head of the operator Stéphane Richard, while placing him under surveillance after his indictment last week in the case Tapie / Credit Lyonnais. The real estate sector, including Nexity (9.41% to 28.94 euros) fared well after positive announcements on taxation. EADS rose slightly from 0.37% to 43 euros, while opened the Paris Air Show. Air France-KLM took 0.34% to 7.2 euros after announcing Monday with India's Jet Airways to strengthen their business partnership. As for cuts, Technip (-1.67% to 83.7 euros) fell in the wake of the stock market collapse of the Italian company Saipem after a profit warning. Valeo has meanwhile lost 0.77% to 51.5 euros. Bank stocks held up well, like BNP Paribas (1.09% to 43.75 euros), Societe Generale (1.33% to 28.94 euros) and Credit Agricole (0.78 % to 6.95 euros). Finally, Arcelor Mittal (-1.12% to 9.13 euros) announced the launch of two buybacks of bonds maturing in 2014 to reduce its debt.