Boosted by more accommodative approaches from European and US central banks, European and US stock markets soared this week. Also boosted by record results from its leading stocks, including luxury goods, the CAC 40 broke through the record 8,000-point barrier on Thursday March 7.
Better than a rock star! Christine Lagarde’s statements at the close of the European Central Bank’s (ECB) monetary policy meeting on Thursday March 7 set the world’s stock markets alight!
While maintaining the expected 4% deposit rate, the ECB reduced its inflation projections for the eurozone. Inflation should be “only” 2.3% in 2024, 2% in 2025 and 1.9% in 2026.
A credit management company such as Muzinich considers it highly likely (86%) that the ECB will cut rates by 25 basis points in June. This would result in a rapid easing of the cost of money. This is likely to boost the eurozone economy. Although the ECB has corrected its growth projection for 2024 downwards (to 0.6%), it sees a clear improvement to +1.5% in 2025, followed by a rise to +2.6% in 2026, thanks to the consumption engine, followed by investment.
Excellent annual results
These auspicious announcements for the European economy came on the heels of the publication, in the preceding days, of excellent annual results by the main players on the Paris stock exchange. The luxury goods sector stood out in particular, with LVMH and Hermès posting record performances in 2023: on Thursday, their respective shares had soared by +14.5% and +20% respectively since the beginning of 2024.
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Read also> [STOCK MARKET UPDATE] PARIS BOURSE ADVANCES CAUTIOUSLY ON MIXED INFLATION DATA
Featured photo : © Presse
