PARIS (Reuters) – Announcements from the European Central Bank on rates in the euro zone and the latest indicators on activity and inflation in the United States helped to support European assets early Thursday afternoon.
In the euro zone, the ECB maintained its deposit rate at 4%, a decision widely expected by consensus before a first rate cut anticipated in June.
In the United States, the producer price indicator and unemployment figures brought some relief to investors, while the inflation indicator published on Wednesday surprised on the upside.
At 1:10 p.m. GMT, the Stoxx 600 rebounded and rose by 0.12%, although it was in decline before the ECB’s announcements. The CAC 40 advanced 0.4% to 8,077.38 points at the same time.
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Yields, up sharply at the start of the session, fell as investors anticipated a rate cut at the next ECB meeting.
The German ten-year yield is stable at 2.425%, after hitting a four-month high during the session.
The two-year yield, more sensitive to rate expectations, lost 1.3 basis points to 2.944%.
The euro nibbles 0.03% to 1.0745 dollars.
(Written by Corentin Chappron)
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