The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange ended down 0.48% on Wednesday, cooled by the fall of Kering after a warning on its upcoming financial results and before the conclusion of the meeting of the American Central Bank.
The flagship CAC 40 index fell 39.64 points to finish at 8,161.41 points. On Tuesday, it gained 0.65% and finished above 8,200 points for the first time.
While the European indices finished close to balance, Paris stood out for its movement with the fall of almost 12% of Kering in one of the worst sessions in its history.
The company warned that its turnover would fall “in the order of 10%” in the first quarter year-on-year, in particular due to the performance of its flagship brand, Gucci, particularly in Asia-Pacific.
This fall represents a loss of more than six billion euros in market capitalization.
“We are starting to get used to these more marked movements than at one time, especially on the downside, when the results disappoint,” notes Lucas Escoffier, trader at Oddo BHF.
But the theme that mainly occupies investors is the conclusion of the meeting of the American Federal Reserve (Fed), after the Paris close.
“We remain on the same theme of the timetable for the reduction of key rates” during the year, observes Mr. Escoffier.
The mood is one of “caution”, especially since the latest inflation figures, in January and February, surprised on the rise and could encourage Fed President Jerome Powell “to calm the enthusiasm” of investors , according to the trader. A narrow majority in favor of a first cut in key rates in June is currently emerging from the market.
On the value side, Kering fell 11.91% to 375.20 euros. Over twelve months, the price even drops by more than 30%.
This movement also weighed down other values, notably in the luxury sector (LVMH -1.63% to 846.20 euros) or other companies sensitive to the Chinese market such as L’Oréal in cosmetics (-1.01 % to 436.75 euros) or Pernord Ricard in spirits (-1.02% to 146.15 euros).
On the other hand, Hermès held on (+0.02% to 2,405 euros).
Crédit Agricole and Worldline, which announced on Wednesday the creation of their joint venture specializing in payment solutions for merchants, which will be “fully operational at the beginning of 2025”, gained 0.09% to 13.25 euros and 0.96% respectively. at 10.05 euros.
Euronext CAC40