(BFM Bourse) – The flagship index of the Paris Stock Exchange rose sharply at mid-session, helped by luxury stocks, themselves supported by the robust publication of the Swiss Richemont.
The Paris Stock Exchange seems set to end the week with a bang. The CAC 40 thus advanced by 0.9% at mid-session this Friday to 7446.02 points. For the time being, the Parisian index manages to stay in the green over the whole week, just (+0.1%).
“Corporate results are generally good even if analysts’ expectations were relatively low. Even if it is a Swiss value, Richemont delivered a good publication, which is promising for other luxury groups”, underlines Christopher Dembik, director of macroeconomic research for Saxo Bank.
Thanks to good results for its 2022-2023 financial year as a whole, with operating income 5% higher than expected and revenue growth of 22% in the fourth quarter alone, Richemont won 4.7 % on the Zurich Stock Exchange.
This supports luxury stocks, Hermès, LVMH and Kering each taking between 0.9% and 1.3%.
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Beijing and Washington are patching things up a bit
Another sector with the wind in its sails, banks are progressing sharply, while investors are beginning to take stock of their quarterly results, which are better than expected, especially for Crédit Agricole SA which takes 2.6% while BNP Paribas advances by 2. 4%.
Societe Generale is a little behind (+1.5%) while the La Défense bank published mixed quarterly accounts, with good momentum in its market and car financing activities. But retail banking in France is marking time.
Investors also appreciate the resumption of diplomatic contacts between Beijing and Washington. The national security adviser to the American president, Jake Sullivan, met the chief of Chinese diplomacy, Wang Yi, Wednesday and Thursday in Vienna, after more than two months of cold.
“It can play on the margins. In view of the latest economic statistics, China has every interest in a lull in relations with the United States”, comments Christopher Dembik.
On values other than luxury and banks, JCDecaux fell sharply (-4%) after publishing disappointing outlook for the second quarter. Orpea for its part gives up 3.8%, the operator of retirement homes having suffered a loss of more than 4 billion euros in 2022, weighed down by inflation and the depreciation of assets.
On other markets, the euro fell 0.05% against the dollar to 1.0911 dollar. Oil moves little. The North Sea Brent contract for delivery in July is stable at 75 dollars a barrel, while the June contract on WTI listed in New York is up 0.3% at 71.04 dollars a barrel.
Julien Marion – ©2023 BFM Bourse