The Paris Stock Exchange ended higher on Wednesday, rather reassured by the American inflation figures in line with expectations, on the eve of the monetary policy meeting of the European Central Bank (ECB).
The CAC 40 gained 0.39% to 7,423.40 points, up 28.62 points. On Tuesday, it finished down sharply by 1.14%.
The American CPI consumer price index showed a further acceleration in inflation in November in the United States, for the second month in a row, to 2.7% year-on-year against 2.6% in October.
Over one month alone, the increase in consumer prices is also higher in November than in October, at 0.3% compared to 0.2%, due in particular to changes in housing and food prices.
“The market was scared about inflation, but the indicator fell right on target. It’s the perfect pretext to get going again,” Grégoire Kounowski, investment advisor, told AFP. at Norman K, after the publication on Wednesday of figures on American inflation.
“This will not prevent the Fed”, the American central bank, “from lowering its rates this month”, judged Bastien Drut, head of strategy and economic studies at CPR AM.
Investors mostly expect the American monetary institution to announce a rate cut of a quarter of a percentage point, which is beneficial for companies and therefore stocks. The Fed is scheduled to meet on December 17-18.
In the meantime, attention is turning to another monetary institution.
On Thursday, the ECB will hold a meeting to decide on the continuation of its policy of lowering its key rates.
“The ECB will lower its rates, the only question is to know at what speed and to what magnitude,” predicts Grégoire Kounowski.
According to broad consensus, this drop should be 0.25 percentage points.
With inflation landing towards the 2% target and growth not taking off in the euro zone, “all the reasons are there” in favor of a further reduction in rates in December, the Governor of the Bank also recently estimated. of France, François Villeroy de Galhau.
On the bond market, the interest rate on the 10-year French bond reached 2.89% at the close, compared to 2.88% the day before. The German rate, used as a reference, stood at 2.12%.
Publicis in shape
The action of French advertising giant Publicis climbed 3.69% on Wednesday, to 106.80 euros, after JPMorgan analysts positively changed their recommendation on the stock.
Euronext CAC40
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