The Paris Stock Exchange rose slightly by 0.41% on Thursday, slightly driven by luxury, before the meeting of the European Central Bank (ECB), in a hurry to act against inflation.

The star CAC 40 index rose at 10 a.m. by 26.99 points to 6,569.12 points, the day after a stable session (+0.07%). The Parisian place will be closed, like other European stock exchanges, Friday and Monday, for the extended Easter weekend.

The conclusions of the ECB’s monetary policy meeting this Thursday are capturing the full attention of investors.

While inflation is reaching record highs, rising to 7.5% over one year in the euro zone and 8.5% in the United States, the institution is under pressure and more and more voices rise to push the ECB to raise its key rates, which are still historically low.

“The ECB doesn’t seem to have the luxury of doing nothing, yet that’s what we can probably expect,” commented CMC Markets analyst Michael Hewson, pointing to a “backdrop of growing discontent on the part of of countries like Germany and the Netherlands in the face of the ECB’s inaction”.

But observers are not counting on any “major decision”. In March, the ECB decided to reduce its intervention in the markets faster than expected.

For Christopher Dembik, director of macroeconomic research at Saxo Bank, “the ECB is not going to change its monetary policy anytime soon, although it appears increasingly clear that inflationary pressures will persist”.

“The Central Bank still believes that the consumer price index will fall back – by magic – close to the 2% threshold from next year”, he criticizes.

However, the economic horizon has darkened considerably with the invasion of Ukraine by Russia, and many countries in the euro zone could experience a decline in their GDP in the coming quarters.

The ECB has so far been the most wait-and-see of the major central banks, and its policy contrasts with that of the US Federal Reserve, which is determined to raise its key rates promptly several times this year.

On the business side, the first quarter results season is launched in Paris.

Hermès exceeds expectations

Sales of the French luxury group Hermès exceeded analysts’ expectations, reaching 2.765 billion euros in the first quarter, an increase of 33% compared to the same period in 2021, despite the war in Ukraine and the confinements in China .

Hermès took 2.32% to 1,279 euros, leading LVMH (+ 0.74% to 638.80 euros) which had reported a 29% jump in sales in the first quarter on Tuesday, Kering (+ 1.24% to 532 80 euros), L’Oréal (+1.20% to 363.50 euros) and EssilorLuxottica (2.44% to 165.90 euros).

Valneva suspended

Valneva’s listing was suspended at the company’s request, and pending the publication of a press release, according to a notice from Euronext. The British regulator approved the Covid-19 vaccine from the Franco-Austrian laboratory on Thursday morning.

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