Covivio Shares Bounce Nearly 3%, Boosted by Easing Long-Term Rates

Covivio Gains 2.74% to €54.30, Surpassing Its 20-Day Moving Average

Covivio shares gained 2.74% to €54.30, up from €52.85 the previous day, as the SBF 120 rose by 0.54% and the CAC 40 by 0.45% during the session. The stock has surpassed its 20-day moving average of €53.98 and is approaching the 50-day moving average at €54.57, while the 200-day moving average at €55.40 remains 1.99% above the current price. The RSI at 52 indicates a neutral setup, consistent with a technical rebound after testing the support at €53.10 as mentioned in a brief from June 18. The next resistance identified is at €55.25, immediately extending from the 200-day moving average. Over longer horizons, performance remains flat: -2.72% over a month and nearly zero over a year (+0.19%). Today's rebound partially offsets the monthly decline without fully compensating for it.

Easing Long-Term Rates and Decline in Oil Prices Support Listed Real Estate Companies

The rebound occurs in a macroeconomic context favorable to real estate stocks. In the United States, the June employment report showed only 57,000 new jobs, far below the expected 110,000, with downward revisions of about 72,000 jobs for April and May. This slowdown in the job market fuels expectations of a more patient Federal Reserve, which weighs on the dollar and eases bond yields, a crucial parameter for the valuation of real estate companies. Concurrently, Brent crude has fallen to around $70.7 per barrel, the lowest in four months, with the normalization of flows through the Strait of Hormuz. This reduction in energy costs reinforces the scenario of a tapering inflation. The next technical threshold to watch is the resistance at €55.25, in contact with the 200-day moving average.