The CAC 40 index has bounced back in the past few days as global equities rebound. The blue-chip index has risen to €6,200, which is about 7.10% above the lowest level this year. It is also the highest it has been since June 10th of this year. This performance is in line with how other leading indices like FTSE MIB, FTSE 100, and DAX have performed this week.
France stocks rise after ECB decision.
The CAC 40 index rallied even after the European Central Bank delivered its first interest rate hike in 11 years. The bank surprised analysts when it decided to hike interest rates by 0.50% on Thursday.
It also hinted that it will continue hiking rates in the coming months as it battles to bring inflation back to 2%. That will be a tough act for the ECB since inflation in France and the euro area currently stands at over 7%.
France stocks also rose after Russia restarted delivering natural gas to European countries using Nord Stream 1 on Thursday. This was notable since some analysts were expecting Putin to continue squeezing the bloc for its support of Ukraine. Still, there are concerns about gas rationing in the coming months.