Paris (AFP)

The Paris Bourse ended sharply higher (+ 0.98%) on Thursday, remaining optimistic rather than worrying about the upcoming reduction in support from the US Federal Reserve or the slowdown in growth in Europe.

The flagship CAC 40 index gained 64.98 points to 6,701.98 points, after two consecutive sessions of clear growth.

"We are still in a market of momentum", where investors, optimistic, continue to bet on stocks which have risen recently, believes Charles Monot, president and manager of Monocle AM.

This pushes "valuations to levels still very very high", "until a pretext causes a correction", he worries.

Investors began the session by digesting the Fed's decision the day before, following its monetary policy meeting.

The institution has taken a further step towards the normalization of its monetary policy, confirming that it could "soon" begin to reduce its monetary support to the economy.

It also plans to raise its key rates earlier than expected, from 2022 and not in 2023.

Positive news in the Evergrande case, a Chinese real estate giant, has generated some relief in the markets.

The president of this ultra-indebted conglomerate, whose possible bankruptcy could shake the economy, called on the group, which faces a new repayment deadline Thursday, to "do everything possible" to honor its commitments, reported the official press.

"The markets panicked on Evergrande but after a positive news it starts again", notes Mr. Monot, little surprised and little worried since according to the observers to whom he trusts "the debt of Evergrande represents only 2% of the size of the Chinese debt market and no other real estate developer is in Evergrande's situation.

The stock markets, European as American, have thus posted good progresses, "despite the evidence that the economy at large is slowing down", notes Michael Hewson, analyst at CMC Markets UK.

Indeed, private sector activity in the euro area slowed for the second consecutive month, according to an indicator from the firm Markit.

And the financial agency S&P Global Ratings has revised upward its growth forecast for the area to 5.1%, against 4.4% previously.

In France, growth in private sector activity was further hampered in September by tensions in corporate supply chains.

The automobile advances

Auto stocks were doing well, "they're one of those, let's say, fashionable stocks that investors buy when the markets are up and sell on days when things aren't going well," Monot said.

Renault rose 2.83% to 30.02 euros and Stellantis 1.21% to 16.75 euros.

The downward revision of the annual objectives of the equipment manufacturer Faurecia did not cause a stir, the title took 6.69% to 40.37 euros.

Valeo also jumped 8.39% to 23.26 euros.

© 2021 AFP