(CercleFinance.com) – The Paris stock market ends this first session of the week with a decline of 1.12%, to 7291 points, penalized by the heavy decline in the luxury sector which is a red lantern with -4% for Hermès , -3.8% for LVMH, -1.9% for Kering and -1.8% for L’Oréal.
The luxury sector, structurally very dependent on the Chinese market, is suffering from the publication of disappointing statistics from Beijing, showing slower growth in the 2nd quarter, with only +0.8% compared to the 1st quarter, against +2, 2% three months earlier compared to the previous quarter.
The news is also marked by the opening of the earnings season on Wall Street where 60 companies in the S&P 500 index, including five components of the Dow Jones, will publish their accounts by Friday.
Among the heavyweights due to announce their quarterly performance this week are – among others – Morgan Stanley, Goldman Sachs, Tesla, Netflix and Johnson & Johnson.
The ramping up of the earnings season will also be a major focus in Europe, where technology groups such as ASML and Nokia will also present their earnings and forecasts.
On the front of the statistics, the investors could take note of a new decline of the index ‘Empire State’ of the manufacturing sector of the region of New York. This stands at +1.1 against +6.6 in June, but it is “less worse” than the consensus predicted, which awaited it in negative territory.
The New York Fed says new orders and shipments from manufacturing companies have increased, while delivery times have shortened and inventories have continued to decline.
Employment levels rose slightly, increases in input and selling prices continued to slow. While companies expect conditions to improve, their optimism has remained muted.
On the data front, the week will be mainly dominated by tomorrow’s release of US retail sales, which will help determine whether the country’s recent strength in consumption has continued into June.
Calm start to the week also on bonds with -1.7 Pt base on our OAT at 3.018%, -2 Pt on Bunds at 2.455% but no variation on Italian BTP at 4.175% and +1 Pt base symbolic on US T-Bonds at 3.8300%.
The FOREX also seems to be dozing with an unchanged E/$ at $1.1220/euro.
In the news of French companies, Alstom announces that it has signed a framework contract with rental company Akiem for a total amount of 500 million euros and relating to 100 Traxx Universal multi-system (MS3) locomotives, including a section farm of 65 locomotives.
Danone announces a decree from the Russian authorities which aims to place Danone Russia under temporary external administration by the Russian authorities, a decision which however has no impact on its financial objectives for the year 2023.
Dassault Aviation confirmed on Friday evening the selection of its Rafale Marine by the Indian Government to equip the Indian Navy with a latest-generation fighter, following a conclusive test campaign held in India.
Finally, Michelin announces that on July 13, in Frankfurt, it received the Automotive INNOVATIONS Award 2023 in the ‘Chassis, Car Body & Exterior’ category for its car tire, road-approved, incorporating 45% sustainable materials.
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