The Paris Stock Exchange rose 0.43% in early trading on Thursday, attempting a second rebound after the one aborted on Wednesday, even if the trend will be mainly influenced by the meeting of the European Central Bank.
The star CAC 40 index advanced by 34.98 points to 8,080.36 points around 9:30 a.m., after having opened almost to equilibrium. On Wednesday, it fell 0.05%, its initial rebound having been broken by higher-than-expected American inflation. It ended at its lowest level since March 11.
If analysts already feared a bad surprise on Wednesday before the publication of inflation, they are more calm about today’s meeting in Frankfurt.
Investors are certain that she will not change the key rates this time, but hope that she will give new clues to prepare minds for a cut in key rates in June.
The situation is more favorable than in the United States: in March, inflation in the euro zone was 2.4% over one year, compared to 3.5% across the Atlantic.
We expect the ECB to reiterate its long-standing position that it would like to wait for more evidence that wage pressure is moderating. However, we also expect the ECB to provide guidance on whether the baseline scenario remains consistent with the rest of the reduction cycle by June, Natixis analysts explain.
Investors are not finished with prices in the United States, since the report on production prices in March is expected in the middle of the session. It is considered a leading indicator of inflation.
On the bond market, the French State’s interest rate continued to approach 3%, the highest since December: it was around 2.95%, compared to 2.93% at the close on Wednesday.
Socit Generale sells BPCE
The banking group BPCE announced on Thursday the signing of a memorandum of understanding with Socit Generale for the resumption of specialized financing activities grouped in the subsidiary Societe Generale Equipment Finance (SGEF), for an amount of €1.1 billion. euros.
This proposed sale would mark an important step in the execution of the strategic roadmap that this banking group presented in September 2023 and which aims in particular to simplify its portfolio of activities, explained Socit Générale in a separate press release on Thursday.
Socit Générale rose 3.12% to 25.92 euros.
Publicis confirms
The French communications giant Publicis confirmed its annual objectives on Thursday and revealed a solid result in the first quarter, with a 4.9% increase in revenues, driven by its technological subsidiaries despite a difficult macroeconomic context.
The group therefore says it is confident in its ability to achieve growth in 2024 of between 4% and 5%. The action increased by 0.94% to 101.50 euros.