The flagship CAC 40 index gained 38.73 points, to 7,137.43 points, after marking a sharp decline of 1.54% the day before.

The Paris Stock Exchange starts June on a good note, after ending May with a monthly loss of 5.24%, its first monthly decline since the beginning of the year, but also the worst since September 2022.

Investors were reassured by the sharp slowdown in euro zone inflation in May, to 6.1% year-on-year, after 7% in April, and by core inflation (which excludes energy and food) which fell to 5.3%, "its lowest level in four months", according to Jack Allen-Reynolds, economist at Capital Economics.

And for Mabrouk Chetouane, head of market strategy at Natixis IM Solutions, markets "are wondering about the persistence of this inflation" and the response of central banks.

"We will continue to move forward – with determination and without discouragement – until we see inflation return to our medium-term target of 2% in due course," European Central Bank (ECB) President Christine Lagarde said on Thursday.

The former minister also indicated that the institution's key interest rates were approaching "cruising altitude".

Also, two rate hikes "more and each 25 basis points (in June and July)" should occur "before keeping them unchanged," according to Salomon Fiedler, analyst at Berenberg.

Investors were also reassured Thursday by the adoption in the United States by the elected members of the House of Representatives of the text to raise the ceiling of the american debt, and thus avoid a default.

The text must now be adopted by the Senate, which is expected to vote quickly.

The bond market eased on Thursday. The interest rate on French ten-year debt was worth 2.81% against 2.85% at Wednesday's close.

Descent into hell for Casino

Casino shares fell 9.43% to 5.05 euros, touching a new all-time low after the group's CEO, Jean-Charles Naouri, was taken into custody.

This custody is part of an investigation against Casino for price manipulation and insider trading, at a time when the group must renegotiate its debt with its creditors to ensure its future. Since the beginning of the year, Casino shares have fallen by 48.31%.

© 2023 AFP