the reasons for a surprising stock market euphoria

By Herve Rousseau



The economic situation, better than expected, and corporate profits carry the index. François BOUCHON/Le Figaro

ANALYSIS – Despite the war in Ukraine and inflation, the Paris Stock Exchange is up 12% since the start of the year. And reached a new record in the spring.

At more than 7300 points, the CAC 40 has risen more than 13% since the start of the year. And, since its trough at the end of last September, it has risen nearly 30%. However, between soaring interest rates and inflation, the ever-present war in Ukraine or, more recently, the crisis of American regional banks, there have been many pitfalls and obstacles in recent months.

But, each time, the market has managed to overcome them and then start again with renewed vigor. The CAC 40 has done well this year compared to foreign indices. It thus scored a new historic record on April 21 at 7,577 points at the close, just a month and a half after the resounding bankruptcy of Silicon Valley Bank.

In recent days, concerns have crystallized around the issue of raising the US debt ceiling. These negotiations, often tense, generally lead to a last-minute compromise. The specialists…

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