The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.57% on Thursday, with the declines of some heavyweights and after its clear progression since the start of the week following the slowdown in American inflation.
The flagship CAC 40 index fell 41.21 points to finish at 7,168.40 points. Over the week, however, it still increased by 1.75%.
The sharp decline of the two heavyweights of the rating, LVMH (-1.79%), after disappointing results from the British luxury group Burberry, and TotalEnergies (-2.64%), with the decline in oil prices, has weighed on overall performance.
Investors did not get any leading economic data, remaining in the streak started by US inflation on Tuesday.
With the slowdown a little stronger than expected, “the market is talking about key rate cuts from the American central bank as early as March”, observes Samy Chaar, chief economist at Lombard Odier, for whom this timetable is too premature given the strength of the American economy.
On Thursday, economic indicators painted the picture of a slowing American economy: the American Department of Labor revealed weekly applications for employment benefits up sharper than expected at 231,000 (+13,000), a peak since 12 weeks.
Industrial production fell more than expected.
This slowdown is still in line with the policy desired by the American Central Bank, and after their rebound on Wednesday, the interest rates on government loans fell sharply again on Thursday: the interest on the loan maturing at 10 years for the French State was trading at 3.15%.
The evolution of central bank policies, and in particular the key rate, “will continue to influence the markets” at the end of 2023 and in 2024, summarized Mr. Chaar, presenting his outlook for the coming months.
Luxury in bad shape
The entire luxury sector in Europe was penalized by the British Burberry, which fell by almost 10% in London, after announcing an 18% decline in its profit in the first half of its staggered financial year, warning of a “slowdown in global demand for luxury” which could prevent it from achieving its annual forecasts.
LVMH dropped 1.79% to 706.10 euros, Kering 2.69% to 399.10 euros, Hermès 0.41% to 1,923 euros.
Alstom leaves again
The railway manufacturer Alstom rose 4.40 euros to 12.57 euros, rebounding after its 15% fall on Wednesday following its quarterly results. Investors were particularly worried about the prospect of a capital increase. Over the week, it lost even more than 4%.
Edenred, sanction confirmed
The companies issuing meal vouchers were indeed guilty of anti-competitive practices, the Paris Court of Appeal ruled on Thursday, confirming the sanctions of the Competition Authority in 2019.
Edenred, the most heavily sanctioned, fell 2.11% to 49.65 euros. The company has announced its intention to appeal to the Court of Cassation.
© 2023 AFP
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