(BFM Bourse) – The Parisian index is advancing sharply in mid-session on Monday, while luxury is driven by positive figures on housing sales in China. Wall Street is closed for a holiday.
The Paris Bourse is starting the week on the right foot. The CAC 40 advances by 0.5% to 7335.48 points, in a market which has to deal with the absence of many American investors.
Wall Street is indeed closed on Monday, due to a public holiday, namely “labor day”, equivalent to Labor Day in our region.
The market has been buoyed by some enthusiasm since the release of US employment figures on Friday.
“The labor market is not yet adjusting, although some may argue that the deceleration in hourly wage increases over the month could be seen as an easing of tensions”, decrypts Sebastian Paris Horvitz, of LBPAM.
“We believe that despite the continued robustness of the job market, the Fed (the Federal Reserve, editor’s note) should take a break in September, while maintaining a tough rhetoric aimed at maintaining restrictive monetary conditions”, he continues.
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Luxury and Thales in the green
The market is also supported by renewed confidence in China showing that the latest government measures announced Thursday, on the financing of real estate purchases, are working.
The publication on Monday of a jump in sales of existing homes in Shanghai and Beijing this past weekend (an increase of more than 100%, according to Bloomberg) is thus supporting the market. The Shanghai Composite gained 1.4%.
“We’ve been waiting for more meaningful housing bailouts to support consumer sentiment and confidence for some time, and now it seems to be materializing more convincingly,” UBS’s Mark Haefele said.
The luxury sector, which is very sensitive to information about China, is progressing. LVMH won 0.7% and Hermès 0.6%.
Thales took nearly 2%, the biggest rise in the CAC 40, supported by an increase in the buy recommendation from Jefferies.
On the other markets, the euro gained 0.2% against the dollar at 1.0805 dollars. Oil is gaining some ground. The November contract on Brent North Sea crude rose 0.2% to 88.75 dollars a barrel while the October contract on WTI listed in New York rose 0.2% to 85.71 dollars per barrel. barrel.
Julien Marion – ©2023 BFM Bourse