(BFM Bourse) – The CAC 40 lost ground mid-session, while the market continued to digest the announcements from the major central banks in recent days.
The Paris Stock Exchange is preparing to put an end to a somewhat disappointing week. The CAC 40 fell 0.6% to 8,134.88 points and further underperformed the other European indices, the Stoxx Europe 600 being stable at the same time. Over the week, the CAC 40 is currently losing 0.36% while the pan-European index is up 0.8%.
The markets were reassured by the meeting of the American Federal Reserve (Fed), with a more accommodating tone expected from both the American central bank and its president Jerome Powell.
“The prospects of lowering key rates, confirmed by the Fed, clearly supported the markets this week. Thus, gold (defensive asset) like stocks (risky assets) reached new historic highs after the Fed meeting on Wednesday evening”, underlines Xavier Chapard of LBPAM.
>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio
Luxury coughs
The Swiss National Bank, for its part, surprised the market by lowering its main key rate and becoming the first major Western central bank to cut its rates. The Bank of England maintained its rates while warning that it was going in “the right direction” to reduce them.
“Most central banks in developed countries have unambiguously confirmed their easing trend this week,” summarizes Pictet Wealth Management.
The CAC 40 is weighed down by the decline in luxury values. Kering lost 3.3%, Hermès lost 2.1% and LVMH lost 2.35%. The sector has suffered in recent days from Kering’s revenue warning. In a note that prefaces the first quarter revenues, Royal Bank of Canada estimates that growth should be sluggish at LVMH in the first quarter, with the bank forecasting like-for-like growth of 1.9%.
“While this has been reported for several months, the reality of a quarter of stagnant revenue growth (and sequential deceleration), with limited upside risk based on the demand environment, leaves no doubt few possibilities to play in the short term”, explains the Canadian bank.
Royal Bank of Canada also lowered its target on Kering to 440 euros compared to 480 euros previously.
Orpea takes 7% as the company prepares to change its name and carried out a share consolidation this Friday which allows it to no longer quote at an unfortunate 1 cent. On other markets, the euro lost 0.4% against the dollar. Oil futures do nothing. That of May on Brent from the North Sea dropped 0.2% to 85.06 dollars per barrel, while that of May on WTI listed in New York lost 0.17% to 80.93 dollars per barrel.
Julien Marion – ©2024 BFM Bourse