(CercleFinance.com) – The Paris Stock Exchange ends this last session of the week with a decline of 0.34%, to 8151 points, notably penalized by the decline in the luxury sector with Kering (-3.5%), LVMH (-2.3%) and Hermès (-1%).
Over the past week, the Parisian index lost a little more than 0.2% but maintained a gain of close to 8% since the start of the year.
In this context, the temptation to take profits is great, with operators being tempted to take some gains on current levels while waiting for new catalysts.
‘There will of course be a breathing space in the market. This is necessary after the spectacular rise at the start of the year,’ believes Christopher Dembik, investment strategy advisor at Pictet AM.
‘In the long term, we remain convinced that the underlying trend is upwards’, however, tempers the analyst.
A point of view shared by Alexandre Baradez, the head of market analysis at IG France, who is however not known to be the most ‘bullish’ (optimistic) strategist in the Parisian market.
According to the analyst, the potential for appreciation of the Parisian index still remains significant, with the aim being the more psychological than technical level of 10,000 points.
‘I obviously think that we will not go in a straight line on these levels but they are achievable objectives in the medium term,’ he told Cercle Finance.
If this last session of the week promises to be relatively light on economic data, investors have taken note of the Ifo business climate index in Germany, which was published in the morning.
This rose from an upwardly revised 85.7 in February to 87.8 in March, well above expectations and its highest level since last June.
On the bond front, 10-year Bunds ended the week well, with an easing of -7 points towards 2.3250%, just like T-Bonds of the same maturity at 4.21% (-6 points).
On the exchange front, the Dollar continues to climb: +0.4% towards 1.081 against the Euro, which lost 0.6% over the week.
This demonstrates a very different reading of Jerome Powell’s announcements on Wednesday evening: currency traders do not seem to adhere to the narrative of an ‘accommodating’ FED… because 3 rate cuts instead of 7 or 8 hoped for at the end of 2023, this ensures a return of 5% for two more quarters.
In French company news, Renault Group and Volvo Group announce the creation of Flexis SAS, a joint venture for the creation of electric vans.
TotalEnergies announces the start of production at the Tyra offshore complex, located in the Danish North Sea, following the completion of a major facility redevelopment project.
Finally, Orpea announced last night that it had completed the consolidation of the shares making up its capital as part of its financial restructuring.
The retirement home operator, which announced this week its intention to change its name to emeis, indicates that 1,000 old shares with a nominal value of 0.01 euros were exchanged for one new share with a value nominal value of ten euros.
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