The Paris Stock Exchange catches its breath – 11/21/2023 at 6:11 p.m.

The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)

The Paris Stock Exchange ended down 0.24% on Tuesday, releasing some gains from recent weeks in a climate of caution before the minutes of the last meeting of the American Federal Reserve (Fed).

The flagship CAC 40 index fell 17.48 points to 7,229.45 points. The day before, it had gained 0.48%.

Investors adopted cautious positioning ahead of the two main events of the week, the release of the “minutes” of the latest Fed meeting and the financial results of technology giant Nvidia, both after the close.

Concerning the American central bank, the comments “are somewhat outdated at this stage and the” economic “data have seemed more promising since”, notes Craig Erlam, analyst at Oanda.

However, “the feeling at the end of the year is important because the reputation of the central bank has been tarnished a little” by its lack of responsiveness to tighten its policy at the start of the surge in inflation, according to him.

On the European Central Bank (ECB) side, the risk is the same according to analysts. “Seeming to doubt its projections or its models, it gives disproportionate weight to lagging indicators of the cycle”, missing “bearish” elements on inflation, estimates Bruno Cavalier, economist at Oddo BHF. For him, “the ECB would today have much more reason to lower its rates than the Fed”.

On the bond market, the interest rate on the 10-year French government bond, the benchmark maturity, continued its overall downward trend. It finished around 3.12%.

The third quarter results of the giant Nvidia, which in May launched the investor frenzy on companies directly or indirectly related to artificial intelligence, are also awaited. Since the start of the year, its share price has increased 3.4 times.

Lackluster luxury

The decline of 1.89% to 704.10 euros of the luxury giant LVMH, after the Swiss bank UBS lowered its recommendation to buy the stock to “neutral”, also weighed on the CAC 40.

Oddo BHF analysts also readjusted their forecasts for LVMH, estimating that after a third quarter “which showed a visible deceleration in growth, both at LVMH and for the luxury sector as a whole”, there is no There is no reason to “count at this stage on an improvement in the general situation” in the fourth quarter, according to a note.

In the same sector, Kering lost 0.93% to 399.45 euros and Hermès gained 0.44% to 1,950.20 euros.

Retirement homes continue to fall

Outside the flagship index, the Orpea retirement home group fell 14.94%, a share worth more than 0.34 euros. The price remains above two cents, the threshold it could reach at the end of the takeover procedure according to the company.

In the same sector, Clariane fell 12.06% to 2.46 euros, still at its historic low, the company also facing important financial deadlines in the coming months.

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