(BFM Bourse) – The Paris Stock Exchange ends the week in decline, penalized by its luxury compartment which is still shaken by the warning on sales from Kering. The CAC 40 lost 0.15% over the week.
The Paris Stock Exchange has opted for a break before the weekend. The CAC 40 closed down 0.34% at 8,151.92 points. With this new decline this Friday evening, the flagship Parisian index shows a slightly negative weekly balance (-0.15%).
The CAC 40 therefore underperformed the other European indices – Frankfurt gained 0.15% and London 0.6% on Friday evening – weighed down by its flagship luxury compartment.
The sector has indeed suffered in recent days from Kering’s revenue warning, which lost another 3.6% this Friday evening. 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.
In its wake, LVMH lost 2.35% and Hermes lost 1%.
Goodbye penny stock status for Orpea
And yet, the week was marked by a new session record, reached Thursday at 8,229.25 points. 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.
“Markets saw a notable rise during the week, mainly due to a series of central bank meetings which allayed concerns about the impossibility of lowering key rates this year,” underlines Florian Ielpo, head of macroeconomic research at Lombard Odier Investment Managers.
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.
Orpea limited its gains to 2.7%, after having gained more than 11% during the session, while the company is preparing to change its name and carried out a share consolidation this Friday which allows it to no longer cost an unfortunate person 1 cent.
On other markets, the euro lost 0.5% against the dollar at 1.0807 dollars. Oil futures are falling. That of May on Brent from the North Sea dropped 0.4% to 85.42 dollars per barrel, while that of May on WTI listed in New York lost 0.5% to 80.69 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse