(BFM Bourse) – The Parisian index is moving up sharply at mid-session, thanks to the sparkling publication of LVMH, the first market capitalization of the Parisian market.
When the catalysts run out, the CAC 40 can count on the dynamism of the largest capitalization of the Paris Stock Exchange and Europe: LVMH. The Parisian index won 0.9% at mid-session, at 7,462.65 points, standing out from other European markets, since the DAX 40 in Frankfurt and the FTSE 100 in London are moving close to balance. The CAC 40 reached a new session record at 7,481.86 points at 10:06 a.m.
LVMH therefore shattered expectations. The insolent growth of the group with 75 houses including Louis Vuitton took the market by surprise, with an increase in its revenues of 17% over the first three months of the year, where analysts were only expecting 10%. The thunderous performance of LVMH has brought other luxury groups in its wake, including Hermès (+3%) and, in Zurich, Richemont (+3.2%).
“Overall, we believe that [la publication de LVMH] supports the already high expectations for Hermes and Burberry (given the strong growth of fashion in leather goods in China) and for Richemont (given a more sustained demand in jewelry)”, dissects Deutsche Bank.
Disappointing Fed Minutes
This support from luxury is proving decisive insofar as few elements are otherwise likely to push the CAC 40. On the contrary, the publication of the minutes (minutes) of the last monetary policy meeting of the Federal Reserve, weighed on Wall Street, which ended lower on Wednesday evening. U.S. markets were “rimmed with doubt after the release of more hawkish Fed minutes [un ton restrictif, NDLR] anticipated by the consensus”, notes John Plassard, of Mirabaud.
“The March minutes reveal that the Federal Reserve’s Monetary Policy Committee was considering a higher rate path due to robust statistics, but considered that the expected tightening of credit conditions resulting from the banking turmoil did not allow for ‘consider additional rate hikes’, summarizes Barclays.
As for values, other than luxury, Klépierre wins 1.8%, driven by a two-notch increase in recommendation from Barclays, from “underweight” to “overweight”. Excluding the SBF 120, the composite materials specialist Altheora took 5%, driven by an initiation of hedging on purchases by Euroland Corporate.
On the other markets, the euro exceeded 1.10 dollars, gaining 0.3% against the greenback, at 1.1023 dollars. Oil prices are sluggish. The North Sea Brent contract for June delivery fell 0.2% to 87.16 dollars a barrel, while the WTI contract listed in New York in May was virtually stable at 83.22 dollars a barrel.
Julien Marion – ©2023 BFM Bourse