The Paris Stock Exchange ended sharply up 0.96% on Friday, with well-received economic indicators in China adding to the enthusiasm born after the meeting of the European Central Bank.
The flagship CAC 40 index gained 70.15 points to 7,378.82 points, the highest since August 8. It even exceeded 7,435 points during the session, for the first time since that same date.
Over the week, it gained 1.91%, thanks to the progression of the last two days, signing its best performance since mid-July.
On Friday, the CAC 40 was driven by companies most sensitive to China’s economic activity, such as the luxury or materials sector, which have suffered on the stock market for several weeks from investors’ concerns about the country.
But “finally, there was good news from China,” explains Clémence de Rothiacob, manager of Richelieu Gestion.
Both retail sales, the main indicator of consumption, and industrial production, grew much more than in July, and much faster than analysts’ estimates.
“Investors remain aware that the low point may not have yet passed, but there are finally statistics better than expectations,” explains Ms. de Rothiacob.
During the week, “investors’ attention changed”: initially worried about the persistence of inflation, with the rise in commodity prices, the mood clearly improved with the decision of the European Central Bank on Thursday.
“The tone” of the institution and its president Christine Lagarde, “was much more accommodating because it was in line with the deterioration of the economy in Europe, which is now established”, according to the manager.
On the other hand, on the bond market, the French State’s interest rates rose sharply, erasing all their sharp decline from the day before. The 10-year maturity rate ended at around 3.22% compared to 3.12% at the close on Thursday, returning to its highest level since July 21.
Good exposure to China
Companies exposed to China have progressed significantly: LVMH gained 2.50% to 761.20 euros, Kering 1.91% to 469.80 euros, Hermès 1.47% to 1,903.60 euros, and in cosmetics, L’Oréal took 1.99% to 410 euros.
In other sectors, Saint-Gobain gained 1.18% to 57.24 euros, ArcelorMittal 1.54% to 24.36 euros.
Banks in good shape
Over the week, financial companies were sought after, taking advantage of the context of high rates which should last a long time in the face of persistent inflation: Axa jumped 6.08% to 29.39 euros over the five sessions, co- best performance with Crédit Agricole, which ended at 11.84 euros per share. BNP Paribas also gained 5.19% to 61.46 euros and Société Générale by 4.71% to 26.47 euros.
Real estate looks gloomy
The real estate sector has once again struggled, having been downgraded several times this week by analysts who are pessimistic about the sector in a context of high rates. Friday, Unibail-Rodamco-Westfield lost 4.59% to 47.20 euros, Covivio 1.63% to 43.50 euros, Icade 1.33% to 34.06 euros.
Nexity, the leading French real estate developer, lost 1.92% to 14.80 euros after announcing on Thursday the launch of a life insurance contract in partnership with the Suravenir group, continuing its diversification strategy to face the crisis. new real estate.
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