Shares in European groups rose again yesterday Thursday (as they did on Wednesday), thanks to favorable corporate results that helped the overall Paris stock market index hit new record highs again. And that development has overshadowed fears that US interest rates could remain high even after evidence emerged that the US economy is strong. In particular, yesterday the pan-European STOXX 600 index ended the session up 0.19%, FTSE 100 added 0.18% in London and DAX in Frankfurt, CAC in Paris added 0.89%, FTSE MIB in Milan and IBEX in Madrid from 0 .35%. In the case of CAC 40, it closed at 7,366.16 units, while it previously set an all-time high of 7,387.29 units for the session. Since the beginning of the year, shares of French groups have risen by an impressive 13.8% after a disappointing 2022. They were greatly helped by the hope that, over time, the eurozone countries will at least avoid recession, but also by the fact that shares of groups such as LVMH and Kering are especially strong. Both are heavily dependent on China, which has restarted its economy in the wake of the coronavirus.

The pan-European STOXX 600 ended the session up 0.19%.

And in the case of Frankfurt, the overall DAX index focused on the profits of industrial groups. “The luxury sector has grown significantly on expectations that China, which has lifted strict restrictions on the virus, will lead to a resurgence in demand,” said Michael Hewson, director of market analysis at CMC Markets UK, adding that lower oil and gas prices contributed to more favorable prognosis. “These are the same factors that supported the automotive industry at the CAC 40 in Paris and the DAX in Frankfurt.” Stuart Cole, macroeconomist at Equiti Capital, stressed that “there is no reason to believe the Fed will become more dovish anytime soon.” The same is true for the ECB, finally, where although price pressures are easing, officials are pushing to keep the tightening policy, with the exception of Fabio Panetta, who has called for a smaller rate hike.