(BFM Bourse) – The Paris Stock Exchange continues to rebound and gains even more than 1% at the close on Tuesday evening. The rise of the CAC 40 was fueled by its precious luxury sector, with the latest positive news from China, as well as by Saint-Gobain, which benefited from the results of an Irish comparable.
The Paris Stock Exchange posted a third consecutive session of increases, thanks to the announcement of potential new stimulus measures in China. The CAC 40 rebounded 1.07%, back from 7200 points to 7220.01 points on Tuesday evening.
The day before, the star index in Paris had already risen by 0.45%, bringing its gains to 2% since the firedamp that struck the CAC 40 last Thursday.
Investors therefore welcome the latest press reports from China regarding potential measures to revive the country’s real estate sector, crucial for growth, but which has been struggling for several years.
However, they remain on their guard on the eve of the publication of inflation figures in the United States for the month of June, expected at 3.1% over one year, and at 5% for the “core” index ( excluding food and energy prices) by economists surveyed by the Wall Street Journal.
Luxury sparkles, Saint-Gobain solid
Luxury stocks drove the growth of the CAC 40, as they are sensitive to information on the macroeconomics and China in particular, the country hot on the heels of the United States as the world’s leading luxury market. LVMH rose 2.2%, Hermès (+2%), Kering (+1.6%) also rose, as did, to a lesser extent, L’Oréal (+0.8%).
But it is Saint-Gobain, the oldest of the CAC 40 resident companies, which shows the strongest growth in the Paris star index. The French specialist in building materials gained 4%, benefiting from a favorable cross-reading of the results of its comparable, the Irish Kingspan whose adjusted operating profit came out well above expectations.
Thales ends up 1.2% and Dassault Aviation 0.8%, benefiting from press information on an order for 26 Rafale from India which could be formalized in the days to come, during the visit in France of Indian Prime Minister Narendra Modi. Dassault Aviation manufactures the fighter plane while the electronic equipment supplied by Thales represents between 20% and 25% of the value of the aircraft.
SES-imagotag gained another 8%, after gaining 36% over the last two sessions. Investors are reassured by the turn taken by the stock market battle between Gotham City Research and the specialist in smart labels and , which seems to be to the advantage of the latest protagonist.
On the smallest caps, the reconditioning specialist Largo soared by 37.8% driven by an initiation of cover on the purchase by TP ICAP Midcap.
On the other markets, the euro is down slightly by 0.1% against the dollar at 1.0992 dollars. Oil contracts are moving up sharply after the measures taken by China and before the publication of inflation figures in the United States. The September North Sea Brent contract jumped 2.2% to $79.42 a barrel, while the New York-listed August WTI contract jumped 2.5% to $74.83 a barrel.
Sabrina Sadgui – ©2023 BFM Bourse