Paris (AFP)

The Paris Stock Exchange ended up sharply on Wednesday (+ 3.36%), regaining the passage of 5,000 points, still driven by the hope of an economic recovery.

The CAC 40 index took 163.41 points to 5.022.38 points, its highest level since March 6. The day before, it had already recorded a sharp increase of 2.02%.

"The European markets remain in a phase of extension. They are surfing on the idea that the recovery will take place," stressed AFP Alexandre Baradez, an analyst at IG France.

"Since the announcement of a European recovery plan, there is a positive feeling on the continent which is largely supported by the colossal action of the central banks", he continued.

As for the ECB meeting tomorrow Thursday, he said, "everyone expects the announcement of an extension of the support program, on average 500 billion euros to end the year" and that helps the clues.

"As the American markets are still holding up, just like the Fed", this consolidates the positions and the recovery of certain activity indices completes the picture, also notes Mr. Baradez.

Investors were particularly comforted by the return to growth in activity in services in China, which experienced its strongest rebound in ten years in May according to the Purchasing Managers' Index (PMI).

But, nuanced Mr. Baradez, from a macroeconomic point of view, "the markets are perhaps a little too enthusiastic and at some point it will probably be necessary to find a balance between economic fundamentals and the massive support of central banks".

For the specialist, "for the market to go really higher it will take a real recovery". And even if investors put them aside for the moment, "two big risks remain on the American side".

Between the still very stormy relations with Beijing and the demonstrations against police brutality, nine days after the death in Minneapolis of George Floyd, a black man asphyxiated by a white police officer, the country is subjected to severe ordeal.

In terms of values, almost all of the CAC 40 ended up in the green.

The spectacular rise of Unibail-Rodamco-Westfield continued with a new jump of 14.68% to 66.54 euros.

Renault (+ 10.49% to 23.97 euros), also particularly benefited from an increase in recommendation and the formalization of its loan guaranteed by the State. Peugeot for its part gained 5.95% to 14.42 euros.

Axa jumped 9.72% to 18.96 euros, boosted by the prospect of paying a dividend even if it is halved. The estimated cost of the epidemic at 1.5 billion euros was also deemed to be absorbable by investors.

Green has been used again for banks. Societe Generale took 4.37% to 14.89 euros, BNP Paribas 4.84% to 36.15 euros and Crédit Agricole 3.46% to 8.48 euros.

LVMH ended up 2.21% to 393.45 euros after press reports of doubts about a finalization of its acquisition of the jeweler Tiffany.

© 2020 AFP