The Paris Bourse ended almost unchanged Thursday (+ 0.05%) after the unsurprising announcements of the European Central Bank (ECB).
The CAC 40 index took 2.83 points to 5,549.65 points, the day after a close down 0.25%.
The Parisian rating had a small epidermal reaction just after the announcements of the European Central Bank (ECB) before returning close to equilibrium.
“Overall, the ECB is doing neither more nor less than what the majority of the consensus expected. Only the most optimistic were a little disappointed,” Guillaume Garabedian, head of advisory management at Meeschaert Gestion Privée told AFP.
The European Central Bank expects a slower-than-expected growth recovery in the euro area, due to the duration of the health crisis, while inflation will remain far from its target, at least until 2023.
Given this economic outlook, the ECB has therefore decided to strengthen its arsenal of measures to support the economy.
It will, as planned, increase the envelope allocated to the emergency pandemic purchasing program (PEPP) by 500 billion euros.
In the very short term, the markets are waiting on the one hand to know the outcome of the post-Brexit negotiations between the European Union and the United Kingdom, and on the other hand to be able to assess the deployment of vaccination.
“What matters is what will happen on Brexit. If the post-Brexit negotiations lead to a + no deal +, you should know that the market has not fully integrated it”, observes Mr. Garabedian.
And the news is not reassuring: three weeks before its break with the European Union, the United Kingdom on Thursday conditioned a post-Brexit trade agreement to major concessions from Brussels, which is preparing for the dreaded “no deal” .
In addition, investors are counting on a massive European recovery plan and on new economic aid to the United States to support the recovery in current activity.
In Europe, “the market expects 750 billion euros put on the table between 2021 and 2022” regardless of the procrastination due to a veto from Poland and Hungary, adds Mr. Garabedian.
The heads of state and government of the Twenty-Seven were trying at a summit in Brussels to unlock the post-Covid recovery plan (750 billion euros) adopted in July.
In terms of values BNP Paribas fell 2.44% to 43.46 euros, Societe Generale 3.25% to 17.10 euros, Crédit Agricole 0.91% to 10.37 euros while the ECB has extended until June 2022 the favorable conditions enjoyed by banks for outstanding loans.
At the top of the CAC 40, Total rose 2.09% to 37.67 euros.
Euronext CAC40
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