CAC 40 Rallies Led By Banks

French stocks rallied on Wednesday as investors put COVID-19 worries on the backburner and looked ahead to the ECB policy meeting on Thursday for directional cues.

The European Central Bank is expected to adjust its forward guidance, reflecting the new 2 percent inflation goal adopted by the central bank under the new strategy unveiled earlier this month.

The new strategy allows the ECB to retain interest rates at record lows for longer periods, while tolerating higher inflation.

ECB President Lagarde remarked last week that the PEPP program would continue until "at least" March 2022.

The benchmark CAC 40 index climbed 92 points, or 1.5 percent, to 6,439 after rising 0.8 percent the previous day.

Banks led the surge, with BNP Paribas, Credit Agricole and Societe Generale rising 2-3 percent.

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