The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 1.12% on Monday, disappointed by poor economic data from China, an important market for the luxury sector which is a heavyweight in the Paris stock market index.
The star CAC 40 index dropped 82.88 points to 7,291.66 points. On Friday, the Parisian rating had ended up for the sixth consecutive time, although modest (+0.06%). Over the week, the index had gained 3.69%, which was its best weekly performance since the end of March.
“After a buoyant week thanks to the slowdown in US inflation on Monday, Chinese growth came out below expectations,” notes Andréa Tuéni of Saxo Bank. However, “it is an important market for our luxury stocks and they represent the bulk of the drop in the CAC 40” on Monday, continues the analyst.
Closing the march of the CAC 40, Hermès ended down 4.21% to 1,912.20 euros, LVMH dropped 3.73% to 859 euros, Kering 1.95 to 490.25 euros. The cosmetics group L’Oréal, often associated with the luxury sector, dropped 1.81% to 413.95 euros.
Beyond Chinese growth, “there is also a need to breathe after the past two weeks”, adds Andréa Tuéni, stressing that this week also corresponds to the period of silence to which the members of the Monetary Committee are subject. American central bank ahead of the next meeting of the institution, scheduled for July 25 and 26.
Another quarter-percentage-point rate hike is 96% expected by investors, despite the pause in hikes seen by the Fed in June, according to calculations on futures products from CME Group. This should bring overnight rates to a range of 5.25% to 5.50%.
However, “the micro-economy will take precedence over the macro in the coming days, with the results season”, as companies begin to publish their results for the second quarter of the current year.
Danone taken aback by Russia
The agri-food giant Danone dropped 0.75% to 55.21 euros, after the Russian state took control of assets in Russia from the French group and the Danish Carlsberg, placed before a fait accompli, even s they had announced their intention to leave the Russian market after the offensive in Ukraine.
Danone assured that the Russian decision would have “no impact on the financial objectives for the year 2023”.
Casino class suspended
Casino’s creditors and the group’s management examined Monday the offer from billionaires Daniel Kretinsky and Marc Ladreit de Lacharrière, alone in the running for the takeover of the distributor in difficulty after the announcement of the withdrawal Sunday evening of the Niel-Pigasse-Zouari trio .
The Casino action was suspended at the opening of the Stock Exchange on Monday, “at the request of the company” and pending a press release, according to a communication from the stock market operator Euronext.
© 2023 AFP
Did you like this article ? Share it with your friends with the buttons below.
