(News Bulletin 247) – The Paris index increased its progress this Thursday afternoon.
The CAC 40 is on track to post one of the best performances of the year. The Paris index accelerated its progression this Thursday, and gained more than 2%, with a gain of 2.06% to 7,721.55 points around 3:15 p.m.
The index is driven by hopes of new economic recovery measures in China, which are driving luxury stocks, heavyweights on the Paris stock market. LVMH, for example, is up 9%.
China’s official Xinhua news agency reported that the Chinese Politburo meeting on Thursday decided that new measures were needed to support the economy and achieve the 5 percent growth target by 2024. The urgency of reviving the real estate sector, which has been in decline for three years, was also stressed.
A reassuring American GDP
Some media outlets also report measures to reduce youth unemployment, or, like Bloomberg, capital injections into state banks.
In addition, the second estimate of US GDP for the second quarter was confirmed at 3% over one year. This proved rather reassuring for investors.
“At first glance, the annual revision of the national accounts does not seem to have had much impact: GDP growth in the second quarter was unchanged at 3.0% and core PCE inflation was unchanged at 2.8%. But in reality, the revisions are all positive,” Capital Economics dissects.
Investors are also keeping an eye on Jerome Powell, the chairman of the Federal Reserve (Fed), who is currently speaking at a conference organized by the US Treasury. His speech, as published on the Fed’s website, does not, however, mention any comments on current monetary policy.
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