(News Bulletin 247) – The Paris Stock Exchange ended down 0.27%, after announcements from the ECB and the publication of an inflation indicator in the United States considered reassuring. Moreover, the market expects the ECB to initiate a first cut in its key rates in June, before the Fed.

Another difficult session to follow on the Paris Stock Exchange. The CAC 40 closed down 0.27% at 8,023.74 points Thursday evening, after a foray below 8,000 points around 4:30 p.m.

The big meeting was obviously the meeting of the European Central Bank (ECB) followed by the monetary policy decision. Unsurprisingly, the ECB maintained its key rates for the 5th time in a row. But the speech of its president Christine Lagarde gave some indications on the future intentions of the European institution.

Everyone has their own way, everyone has their own way

The ECB confirms the continuous and gradual decline in inflation and emphasizes that “most measures of underlying inflation” are decreasing and that “wage growth is gradually tapering off”…

It is therefore gradually preparing the markets for a first cut in interest rates in June, if the inflation trajectory was still oriented towards its 2% target. “Emphasizing the progress made in terms of disinflation, the ECB is suggesting that it will lower its rates in June, and that it will continue to do the same in the second half of the year,” says Bastien Drut, head of strategy. and economic studies at CPR AM.

The ECB also recalls that its future decisions will depend on the evolution of economic data and not on the intentions of the Federal Reserve on its rates. The ECB would therefore gain its independence, whereas it was accustomed to following the changes of gear of its American counterpart.

“Questioned about the evolution of American inflation and its impact on monetary policy across the Atlantic, Christine Lagarde refused any speculation on the future decisions of the FED and any suggestion of exchange control… The ECB n “is not ‘FED dependent’. Of which fact”, underlines Alexandre Perricard, general manager and head of rate management at Uzès Gestion. It must be said that the ECB meeting took place the day after the publication of inflation in the United States for the month of March. Note that the PPI index, measuring prices this time on the producer side, increased less than expected, by 0.2% over one month in March, against 0.3% expected by the consensus.

Publicis in the spotlight of the day

On the stock side, Publicis, the first CAC 40 stock to publish its first quarter activity, jumped 3.1%. The advertising group delivered a “solid” quarter for Bank of America, with like-for-like growth of 5.3% year-on-year.

The Société Générale bank limits its gains to 0.3% driven by the announcement of the sale of its professional equipment financing activities to BPCE for 1.1 billion euros.

On the smaller stocks, the catamaran specialist Catana gained 5.9% after publishing its activity for the first half of its staggered financial year.

For its first publication as a listed company, Stif (+16%) caused a sensation. The group specializing in protective equipment against the risks of explosions in industrial environments revealed dynamic activity at the start of the year, after an already solid year in 2023.

On other markets, the euro fell 0.2% against the dollar to 1.0722 dollars, after the ECB. Oil is turning lower, undermined by the rise in US weekly stocks. The June North Sea Brent contract lost 0.5% to $90 per barrel, while WTI listed in New York returned 0.8% to $86.37 per barrel.