The Paris Stock Exchange ended up slightly up 0.27% on Thursday, having well digested the downward revision to growth in the euro zone and benefiting from a small rate cut before central bank meetings next week.
The star CAC 40 index advanced 19.36 points to finish at 7,222.15 points. Over the first four days of the week, however, it drops by 0.67%.
After a lower opening, the Parisian coast resumed the upward path, accelerating after the publication of the jump in weekly applications for unemployment benefits in the United States, their highest level since October 2021.
A less dynamic labor market is welcomed by the American central bank in its fight against inflation.
French government borrowing rates fell slightly after their sharp rise on Wednesday. The interest for the 10-year loan amounted to 3.95%, against 3.01% on Wednesday.
The euro also strengthened against the dollar.
At the start of the session, investors learned that the euro zone had entered into recession this winter, penalized by the decline in consumption under the effect of price increases and by the difficulties of German industry, according to Eurostat data. During the last two quarters, gross domestic product fell by 0.1%, data revised downwards.
We are no longer in a cycle of stagnation, which is anticipated by the market, assured Charlotte de Montpellier, an ING economist.
More importantly, she says, all economic indicators since have been poor, which bodes well that the trend will continue.
Growth data will be taken into account by the European Central Bank, which meets like the US Federal Reserve next week, but forward-looking activity indicators are more important, and the shift into recession does not mean that the he institution has completed its rate hike cycle, warns Ms. de Montpellier.
Socit Generale reduces its subsidiaries
Socit Generale (+ 1.17% 22.88 euros) announced Thursday the conclusion of agreements with two African banking groups to sell them four of its subsidiaries, in Congo and Equatorial Guinea to the Vista group and in Mauritania and Chad to the group. Coris.
It rose more than the other banking groups of the CAC 40, Credit Agricole (+0.76% 10.93 euros), and BNP Paribas (+0.44% 57.01 euros).
The car in front
Automobile-related stocks topped the indices: on the CAC 40, Stellantis gained 1.51% to 15.18 euros, Renault 1.09% to 32.87 euros, Michelin 1.51% to 27.59 euros. On the expanded index, Valeo took 4.79% 20.77 euros, and signs the best progression of the week so far, Forvia 3.67% 22.04 euros, Plastic Omnium 2.27% 15.79 euros.