The control room of Euronext, a company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
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The Paris Bourse gained 0.33% at mid-session Thursday pending the additional anti-crisis remedy that the European Central Bank must offer in the early afternoon, in the middle of the second epidemic wave.
The CAC 40 index rose by 18.20 points to 5,565.02 points around 1:10 p.m. (12:10 GMT), while Europe-wide Frankfurt gained 0.02%, London 0.75% and Milan 0.33%.
“Everyone’s eyes and ears are on the ECB,” says Stephen Innes, global strategist for Axi.
It is almost acknowledged that the institution, which spends without counting to support the economy of the euro zone in the face of the pandemic, will further amplify its intervention on Thursday in the middle of the second pandemic wave.
The private and public debt buyback program launched in March (PEPP) should be extended from 6 to 12 months after its scheduled end in June 2021, economists predict, and its volume of 1.350 billion euros would be increased by more or less 500 billion euros.
The ECB could also relax this program by including the buybacks of “rotten” loans issued by healthy companies. It should also offer waves of long-term loans (TLTRO) beyond March 2021 and still at a favorable rate, to encourage banks to lend.
The president of the institution, Christine Lagarde will speak at 2:30 p.m. (1:30 p.m. GMT).
On the bond market, the rates on the debt of the countries of the euro zone fell significantly before this meeting. The Portuguese 10-year rate was moving into negative territory after crossing this milestone in mid-week, and the Spanish were getting closer.
Market players also have an eye on the discussions around Brexit the day after a “lively” dinner between British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen, according to the latter.
However, the fact that “Boris Johnson makes the trip to Brussels to have dinner with Ursula Von Der Leyen offers a hope” of outcome to this long divorce, underlines Michael Hewson, chief analyst for CMC Markets UK.
The fear of the absence of an agreement between the European Union and the United Kingdom on their post-Brexit relationship caused the pound to fall by 1% against the euro.
PRUDENT BANKS BEFORE THE ECB
BNP Paribas fell 0.70% to 44.24 euros, Societe Generale 1.24% to 17.45 euros, Standard Chartered 1.05% to 470.00 pence and Deutsche Bank 0.76% to 9, 23 euros, before the ECB meeting which often influences their price.
ADP SIZE IN THE WORKFORCE
The manager of Paris airports (+ 0.57% to 106.60 euros) hit hard by the Covid-19 crisis, will cut 11% of its workforce as part of a conventional termination agreement that will prevent departures forced, he announced Wednesday.
PARTOUCHE “SEREIN” DESPITE THE DIFFICULTIES
The group of casinos (+ 0.94% to 21.40 euros) saw its annual turnover fall by 20.8%, penalized by the closures linked to the pandemic, but remains “serene” in view of the dynamism of activity when establishments reopen.
Euronext CAC40
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