The Paris Bourse rises 2.44%, cheerful spectator of the Trump-Biden duel

The Paris Stock Exchange closed sharply higher by 2.44% on Tuesday, tackling US election day favorably for which Democratic candidate Joe Biden is favorite despite a tight lead in several key states.

The Parisian CAC 40 index advanced 114.47 points to 4,805.61 points. This is the second session in a row where the CAC 40 takes more than 2%, after its worst plunge in five months during the previous week, of more than 6%.

On Wall Street at mid-session, around 5:50 p.m. (4:50 p.m. GMT), the Dow Jones index gained 2.47%, the Nasdaq 2.14% and the S&P 500 extended index 2.30%.

Will we have a winner at the end of the vote on the night of Tuesday to Wednesday? Can Donald Trump surprise again? Will he accept defeat?

A few hours before the end of the ballot, these uncertainties did not prevent investors, traditionally very resistant to doubt, from moving forward.

“We have talked so much about all the possible and imaginable scenarios in this election that it is unlikely that we will be as surprised as in 2016” when Mr. Trump had created the surprise facing Hillary Clinton, observes JJ Kinahan, head of the markets strategy at TD Ameritrade in the United States.

For Christopher Dembik, head of economic research at Saxo Bank, “the market is betting on a victory for Biden and a blue wave”, the Democratic color.

The 77-year-old candidate notably promised a massive stimulus plan to help American businesses and households cope with the economic crisis linked to the Covid-19 pandemic.

Wednesday’s session could however be more agitated according to him.

“If Biden wins we could see profit taking, if Trump is a risk aversion phenomenon,” he anticipates, adding that the future composition of the two chambers of Congress, another major issue for the election will be one to watch very closely.

Market volatility remains at high levels for the time being, but far from the annual peak experienced during the first wave of Covid-19 in March.

BNP Paribas climbed 6.12% to 33.03 euros after the publication of its results showing in the third quarter a net profit of 1.89 billion euros, down 2.3% over one year despite a context economic and health uncertain.

In its wake, Societe Generale also rose 5.44% to 12.78 euros and Crédit Agricole 4.35% to 7.29 euros. These three banks had already recorded significant gains on Monday.

ArcelorMittal (+ 2.25% to 12.25 euros), Renault (+ 6.77% to 22.96 euros) or Safran (+ 5.90% to 96.94 euros) took advantage of the renewed interest in cyclical values, dependent on economic activity.

Euronext CAC40