The Paris Stock Exchange closed up 0.75% on Thursday, thanks to good corporate performance and the reassuring tone of the European Central Bank (ECB) President.
The flagship CAC 40 index rose 50.70 points to 6,804.22 points, rising above 6,800 points, the first time since August 16.
The day before, it closed down 0.19%.
Despite the sharp rise in inflation in the Eurozone, the European Central Bank on Thursday maintained all its support measures for the economy-massive asset purchases and very low key interest rates.
Saxo Bank analyst Andrea Tuéni commented: “The conclusion of this meeting of the European Central Bank is a meeting in December” to learn more about the gradual normalization of its monetary policy. He recalled that investors did not No special announcement has been awaited.
“Nevertheless, Christina Lagarde announced that there has been a lot of discussion around inflation, which is a matter of concern,” he added.
She estimates that the inflation spike in Europe will be “longer than expected”, but it should “decrease” in 2022.
Regarding economic activity in the Eurozone, for the European Central Bank President, the recovery is still strong, but due to shortages, “the momentum is slowing down”, and rising energy prices “may reduce purchasing power.”
After these announcements and the decisions of other central banks since the previous day, the interest rates on European sovereign debt caused the yo-yo to turn upwards before calming down. Around 6:00 pm, the yield on French 10-year government bonds rose to 0.20% from 0.16% the day before.
The bleak macroeconomic data did not cause the market to panic: After the US economy grew by 6.7% in the second quarter, it slowed sharply to 2% in the third quarter, which was lower than analysts’ expectations.
On an annual basis, the inflation rate there reached 5.3% in the third quarter, a marked slowdown from the 6.5% in the previous quarter.
In Germany, consumer prices rose by 4.5% in October.
After the announcement of the results, three companies in the new technology field were on the podium of CAC 40.
STMicroelectronics, a French-semiconductor group, rose 6.34% to 41.32 euros. Driven by the very strong global demand for microchips, its revenue in the third quarter increased by 19.9% to US$3.2 billion.
IT giant Capgemini raised its growth forecast for this year, rising 5.98% to 199.30 euros.
French software champion Dassault Systèmes did the same thing according to his predictions, winning 50 Euros at 5.86 percent.
The aviation industry is not far behind
The situation is the same for Airbus (+ 1.82% to 112 euros). The company raised its 2021 financial forecast after announcing its third-quarter net profit.
Subsequently, on the eve of the announcement of its results, the aerospace supplier Safran increased the price to 114.08 euros at a price of 1.86%.
Severely hit by the shortage of semiconductors, the automaker Stellattis produced approximately 600,000 vehicles in the third quarter, which was less than expected (-30%). He lost 1.44% to 17.30 euros, dragging Renault (-1.39% to 30.92 euros).
URW strives to catch up with 2019
Shopping center giant Unibail-Rodamco-Westfield (URW) fell 8.38% to 62.23 euros. In the first nine months of this year, its revenue has fallen by 15.6% compared to 2020, and store attendance is still only 80% of the 2019 level before the Covid-19 pandemic.