The Paris Stock Exchange is anchored in the green on Monday and continues its momentum of last week (+ 3.6%) by gaining nearly 1% at midday according to its flagship indicator, the Bedroom 40, at 6,576.19 points. Volumes slightly exceed one billion euros. In the absence of its American compass, where the markets are closed for Memorial Day, it is China that guides Europe. The trend is thus benefiting from the announcement of the gradual lifting of health restrictions in certain districts of Beijing, where shopping centers are reopening in particular, and in Shanghai, where the resumption of production in factories has been confirmed for this Wednesday. In the first metropolis, the number of Covid-19 infections fell to 12 this Sunday, against 21 cases on Saturday. In the second city, there were only 67 cases yesterday, against 122 the day before.
Luxury stocks, which account for more than 20% of the capitalization of the Cac 40, play a key driver in the rise of the day. L’Oreal, Hermes, Kering and LVMH occupy the first places in the Cac 40 charts, with gains of 3.6% to 4.4%. The spirits producer Pernod Ricard advance of 1.9% and, excluding the index, Remy Cointreau by nearly 4%. Interparfums climbed 5.4%. Elsewhere in Europe, Richemontowner of the Cartier brand, Pandora, the costume jewelry manufacturer, and Hugo Boss are also surrounded.
Conversely, Sanofi loses more than 3%. The title of the pharmaceutical laboratory is weighed down by the announcement of the suspension of the trial, by the American health authorities (FDA) of the over-the-counter version of Cialis, a treatment against erectile dysfunction.
With the exception of inflation figures in Europe (in Germany especially today; we already know that the rise in prices accelerated in Spain in May, to 8.7% over one year, against 8 ,3% in April), it is once again to the United States that the attention of operators will turn this week, with the publication, on Friday, of employment figures for the month of May and, before that, publication of the Fed’s Beige Book on Wednesday. It is also Wednesday that the central bank begins to reduce the size of its balance sheet.
The evolution of wages in the line of sight
For Ipek Ozkardeskaya, of Swissquote Bank, the end of the sell-off in New York will depend on the economic data that will be presented, they will guide the American Federal Reserve in its monetary policy. If the PCE price index showed some slowdown on Friday, with an increase reduced from 6.6% to 6.3% over one year, personal income rose slightly less than the previous month.
” If we start to see weaker revenue growth, spending won’t be able to stay that strong. And lower spending will ultimately have a negative effect on consumer prices. If so, the Federal Reserve could finally ease the pressure in September – after two very likely 50 basis point hikes in June and July – and that prospect alone could be enough to put a little smile on the face of investors after this correction. as brutal of the market », Analyzes Ipek Ozkardeskaya. More than job creation on Friday, we will closely monitor the evolution of wages compared to April and over one year. It could come back from 5.5% to 5.2% over one year according to the Bloomberg consensus.