The Paris Stock Exchange down 0.38% Tuesday morning

The Paris Stock Exchange fell on Tuesday, waiting before economic meetings but also national politics, a few hours before the general policy speech of the Prime Minister, Michel Barnier.

The flagship index of the Paris Stock Exchange fell by 0.38% around 10:00 a.m., or by 29.18 points to 7,606.57 points.

On Monday, the index fell sharply by 2% at the end of its last session of the third quarter, during which it increased by 4.18%.

“French Prime Minister Michel Barnier will deliver a policy speech and will likely provide insight into the latest developments in a difficult budget negotiation,” comments Jim Reid, Deutsche Bank economist.

This speech “will be one of the major events of the week”, underline Natixis analysts.

Michel Barnier’s room for maneuver is very narrow. Added to the absence of a majority is an explosive financial situation, with a spiraling public deficit which will force the government to cut spending.

His allies from the Macronist bloc also urge the Prime Minister not to unravel the policy pursued for seven years, particularly in terms of reducing taxes. Because the most delicate decisions will concern the budget when the deficit could exceed 6% of GDP this year, far from the 3% set by Brussels.

Michel Barnier is expected to announce, at the same time as spending cuts, an increase in certain taxes on big businesses and the richest.

Elsewhere on the session’s agenda, the publication of the latest inflation figures in the euro zone will attract the market’s attention.

These figures should “confirm that inflation in the region has fallen well below the 2% objective” pursued by the ECB, comments Ipek Ozkardeskaya.

“In other words, the ECB has little reason not to announce a further rate cut at the October meeting (…) and markets now price the chances of a cut at 80% from 0 .25 percentage point of the ECB’s interest rates on October 17”, the date of its next monetary policy meeting, the analyst further detailed.

The market will also be attentive to the publication of figures on private sector activity (PMI) in September in the United States as well as on activity in services (ISM) for the same period. The number of vacant positions (JOLTS) in August will also be looked at.

Later this week, investors’ eyes should turn to the United States, with the monthly ADP/Stanford Lab survey, which measures job creation in the private sector, before the highly anticipated American employment report on Friday.

LVMH separates from Virgil Abloh’s legacy

The luxury giant LVMH (-1.38% to 679.00 euros) announced Monday evening the sale of the Off-White brand, founded in 2012 by the former artistic director of Louis Vuitton’s men’s collections Virgil Abloh, at a New York-based brand management company, Bluestar Alliance LLC.

LVMH had acquired 60% of Off-White in July 2021, Mr. Abloh, who died in 2021, held 40%, while he was already artistic director of Louis Vuitton’s men’s collections.

© 2024 AFP

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