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CAC40: close to 7,200 points, helped by luxury


(CercleFinance.com) – After dropping nearly 1% yesterday, the Paris Stock Exchange made up part of its delay today and took 0.55%, to 7,172 points, at the close, taking advantage of the dynamism of the luxury stocks like LVMH (+3.6%), Hermès (+2.4%) or Kering (+2%).

The markets, however, remain concerned about the rise in rates on the bond market. The US ten-year yield peaked as high as 1.88%, surpassing the pre-pandemic level, before falling back somewhat tonight around 1.83%.

The magnitude of this phenomenon raises fears of the emergence of a lasting downward movement in the equity markets, against a backdrop of tightening of the Fed’s monetary policy.

Indeed, shares are riskier products than bonds and, as such, should theoretically offer a higher return than bonds. The rise in interest rates therefore leads to a better return on bonds, which could lead some investors to turn away from the equity market.

The financial markets will in any case have to live with higher interest rates”, warn this morning the strategists of Oddo BHF.

In this context, the Euro Stoxx50 is gaining 0.1%, while Frankfurt and London assume respectively 0.1% and 0.3%.

Across the Atlantic, the American indices are moving in the red, with the S&P500 at -0.3%, the Nasdaq at -0.4% and a stable Dow Jones.

In the early afternoon, investors took note of the latest US real estate figures.

According to the Commerce Department, housing starts rose 1.4% seasonally adjusted last month in the United States, to 1,702,000 annualized, a level well above consensus.

The session was also rich in earnings publications, including the quarterly accounts of Bank of America, Morgan Stanley and Procter & Gamble which were published before the opening of the New York Stock Exchange.

In the news of French stocks, Airbus plans to recruit around 6,000 people at group level over the first six months of the year, according to figures released on Wednesday by the European aircraft manufacturer.

Morgan Stanley raised its price target on Airbus, which it increases from 120 to 135 euros, while maintaining an ‘overweight’ advice on the value. The research department believes that the stock presents the most favorable risk/return profile in the civil aviation sector.

TechnipFMC and Magnora announce that their partnership Magnora Offshore Wind AS, combining their respective expertise, has been offered the possibility of entering into an option agreement for the N3 zone located in the North West part of Scotland.

Sanofi reports positive results from a second phase III trial evaluating Dupixent (dupilumab) in adults with uncontrolled prurigo nodularis, a chronic skin disease with a type 2 inflammatory signature.

Finally, TotalEnergies announced on Wednesday that it has joined the initiative launched by Masdar and Siemens Energy in the United Arab Emirates to accelerate the development of green hydrogen and the production of sustainable air fuel.

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