Paris (AFP)

The Paris Stock Exchange returned to green on Thursday after the sharp drop the previous day, relieved by the action of the European Central Bank and despite a still worrying health situation.

The ACC gained 47.22 points to 4,918.58 points in a moderate trading volume of 3.6 billion euros. The day before, it had dropped 2.92%.

"The market has succeeded in reversing the trend thanks to the ECB," said Andrea Tuéni, an analyst at Saxo Bank.

The European institution "seemed to want to move forward" in the dispute between it and the German Constitutional Court, said Mr. Tuéni.

In the minutes of its last meeting, published on its website, the ECB says that the asset buybacks decided in 2015 and during the 2020 emergency plan are "proportionate measures" to help the economy and allow " pursue the objective of price stability ", with" sufficient "guarantees.

It is an indirect response, and without naming it, to the resounding judgment in early May of the German Constitutional Court. The latter had criticized the "lack of proportionality" in these debt buyouts on the market and threatened to prohibit the German Central Bank from participating if the ECB was not justified.

- Sword of Damocles -

The risks have not disappeared, and the International Monetary Fund warned Thursday of the risk of a severe correction in the markets deemed "disconnected" from reality.

"It's a reality that we observe," confirms Andrea Tuéni, but "we must underline the infallible support of central banks, already very present before the crisis. They inject a huge amount of liquidity into the markets and this liquidity must go somewhere."

The concerns are more of a health nature while for the "first time in months", Europe is experiencing an increase in the number of weekly cases of Covid-19, especially in eleven countries, warned the World Health Organization on Thursday. Health while welcoming the "rapid reaction" of several countries, such as Poland, Germany and Spain.

In the United States, the governor of Texas announced Thursday to "pause" the process of deconfinement underway in his state. The number of new daily infections neared record levels on Wednesday, with nearly 36,000 cases in 24 hours.

The disease is "a sword of Damocles" for the markets as long as "a treatment which works or a vaccine" are not found, judge M. Tuéni.

These two opposing trends cause the stock market to hesitate, unable to finish twice in the same direction for six sessions.

Today's indicators were also ambivalent. In the United States, the drop in the number of new unemployed registrants was less marked than expected, while orders for durable goods jumped 15.8% in May, while the consensus was for an increase of 11, 6%.

Peugeot gained 1.43% to 14.21 euros after its shareholders confirmed Thursday at their annual general meeting the strategic option of a merger with Fiat Chrysler (FCA). Renault also rose 2.27% to 21.39 euros.

Bank values ​​rebounded, starting with Societe Generale which took 3.46% to 14.76 euros, while Crédit Agricole advanced 3.01% to 8.28 euros and BNP from 1.93% to 35, 17 euros.

© 2020 AFP