The CAC 40 moved into positive territory, crossing a new all-time high and confirming the upward trend begun the previous day. Investors remain optimistic, buoyed by expectations of more flexible monetary policies.
The Paris Bourse’s flagship index hit a new all-time high during Friday’s session, confirming the upward trend begun the previous day. At around 4.20pm, the index was up 0.30%, or 22.82 points, to 7,765.20 points, having peaked at 7,797.24 points during the session.
This performance followed a record close the previous day, marking a week of significant progress, with the weekly balance up 1.83%.
Yesterday, European markets closed in positive territory, buoyed by solid corporate results. In Paris, the CAC 40 gained 0.86% to 7,743.42 points, setting a new all-time record. On Wall Street, the session was also positive, with indices ending higher despite contrasting economic data. The Dow Jones gained 0.91% to 38,773 points and the Nasdaq 0.30% to 15,906 points.
“The good news on growth and the fact that inflation is continuing to decelerate, which will surely lead to a loosening of monetary policies, are factors that partly justify the optimism that has prevailed on the markets since the beginning of the year,” explains Sebastian Paris Horvitz, LBPAM’s Director of Research.
Since March 2022, the European and American central banks have repeatedly raised their key rates to control inflation and keep it at their 2% target. However, these measures have reached a plateau, with central banks awaiting favorable signals for a first rate cut.
Expectations of rate cuts
The certainty that these rate cuts will take place in 2024, followed potentially by several more, is prompting investors to anticipate looser monetary conditions.
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