[vc_row njt-role-user-roles=”administrator,armember”][vc_column][vc_column_text]
After being propelled to a record high on Tuesday, approaching that of 2007, the Paris Bourse posted a slight increase after the Fed’s latest monetary policy meeting.
While Paris was surprised by the strong rise of the CAC 40 on Tuesday, April 6, and the Paris index reached 6,159 points shortly after the opening, nearing its 2007 record (6,168.15 points), the Paris Stock Exchange is up slightly this Thursday morning (+0.37%).
Indeed, the Paris Stock Exchange, which stabilized yesterday during a generally calm session, opened this morning on a rise of 0.37%, reassured by the results of the latest monetary policy meeting of the Fed, which confirmed its willingness to support the economy in these times of health crisis.
The boss of the U.S. Central Bank (Fed), Jerome Powel, said that the recovery remained “incomplete” and that the purchases of Treasury bonds by the institution and low-interest rates continued to be justified until “substantial progress” is demonstrated.
The CAC 40 index closed yesterday’s session by stabilizing (-0.01%). This morning, the CAC 40 index was up 22.70 points at 6,153.36 points. The key index even registered a higher level than in 2007, at 6,171.45 points, and is now heading towards its 2000 highs. After the historic meeting of the S&P 500, the Dow Jones index gained 0.1%. The Nasdaq 100 was up 0.6%.
On the luxury side, the LVMH group, a major contributor to the CAC 40, gained 1.5% after reaching a record high of 586.90 euros. The financial analysis firm Invest Securities changed the stock from “neutral” to “buy”, raising its target price to 634 euros. After a rise of 2.7%, Hermès was upgraded from “neutral” to “outperform” according to Oddo BHF. Finally, the L’Oréal group jumped 1.1%, with an all-time high of 335 euros.
However, markets are watching for the release of the European Central Bank (ECB) monetary policy meeting minutes, a day after the release of the latest U.S. Federal Reserve (Fed) monetary policy meeting. They will also be paying attention to the upcoming IMF press conference at the conclusion of this spring’s meetings.
“The scenario of a strong rebound in activity across the Atlantic has been confirmed by the publication of the minutes of the last meeting of the U.S. central bank,” says Christopher Dembik, associate director at Berenberg.
“Its members welcomed the Biden administration’s stimulus plan, which exceeded their expectations. However, they made it clear that a change in monetary policy in the short and medium-term is not on the table, which should reassure investors about the Fed’s intentions,” he concluded.
Read also > PARIS STOCK EXCHANGE: THE CAC 40 RETURNS TO ITS GLORIOUS PAST OF 2007
Featured Photo : © Press[/vc_column_text][/vc_column][/vc_row]
