The Paris Stock Exchange rose 0.69% on Thursday, supported as it had been since the start of the week by investors’ optimism regarding the upcoming drop in interest rates, a hope reinforced on Thursday by the Bank of England.
The flagship CAC 40 index rose 56.24 points to 8187.65 points, the highest since April 2. On Wednesday, it achieved a fourth consecutive session of increase (+0.69%). The Parisian coast reversed the trend on Friday after its decline during the second part of April with the report on American employment, whose less good data than expected gave investors hope regarding the timetable for rate cuts. the American central bank.
Markets have been supported recently by the fact that central banks are closing the door to rate cuts less than expected, estimates Florian Ielpo, head of macroeconomic research at Lombard Odier IM. Any element likely to reassure investors in their hope of seeing central banks reduce their key rates soon is well received.
Bank of England optimistic about falling inflation
On Thursday, the Bank of England (BoE) unsurprisingly maintained its key rate at 5.25%, but said it was optimistic about a decline in inflation in the coming months, which could pave the way for monetary easing. It was expected that the BoE would show a certain caution while taking a step towards a possible easing of its monetary policy, comments Florian Ielpo.
But ultimately, the BoE was much more optimistic about the trajectory of inflation and two members of the monetary policy committee have now called for a rate cut, he continues. The good results published by companies and the indicators which show that the European economy is recovering also contribute to the good mood on the markets.
Chinese exports started to rise again in April, while imports far exceeded analysts’ expectations, according to official figures published on Thursday, good news for the recovery of the world’s second largest economy. On the bond market, the 10-year French state interest rate rose to around 2.98% around 6 p.m. (4 p.m. GMT), compared to 2.94% the day before at the close.
Accor at the bottom of the CAC 40
The French hotel group Accor lost 2.41% to 40.47 euros, recording the worst performance of the CAC 40. The accommodation reservation platform Airbnb published its results on Wednesday and forecast lower sales than expected. analysts for the second quarter 2.68 billion dollars minimum.
However, the company says it is experiencing robust demand for travel, particularly with the Olympic Games being held this summer in Paris.