The Paris Bourse exceeded 7,200 points on Friday, driven by both luxury goods and TotalEnergies, at the end of a week marked by hopes of a slowdown in monetary tightening by American central banks (Fed), European (ECB ) and England (BoE).
After opening lower, the CAC 40 index ended up sharply (+0.94%) at 7,233.94 points and posted its fifth week in the green since the start of the year.
The session was driven by the job market in the United States, which defied forecasts in January, displaying iron health despite fears of a slowdown and announcements of layoffs.
As for the unemployment rate, which had already returned for several months to its pre-pandemic level, the lowest in 50 years, it fell a little further, to 3.4% (-0.1 point).
Despite the rise in rates, the firmness of the employment market makes many say that we could rule out a possible recession, this is the ideal scenario because it would suggest a soft landing for the economy, that is– mean a drop in inflation without a recession, says AFP Franklin Pichard, director of Kiplink Finance.
Investors, who had been reassured the day before by the speeches of central bankers deemed more accommodating than the previous times, do not want to place themselves in a profit-taking scenario and continue to overcome obstacles when there are any, adds the expert.
However, will this US jobs report calm the expectations of investors who have generally interpreted the slowdown in the Fed’s rate hike as a signal of a more accommodative policy in the coming months, while the speech of Mr. Powell (the president of the Fed, ND) remained very firm?, wonders Roland Toulet Morlanne, manager of portfolios within Degroof Petercam Wealth Management France.
Historic highs in luxury
LVMH gained 2.51% to 829.40 euros, a new all-time high, like Herms (+2.15 to 1,778 euros). Kering, which announced the creation of a Beauty division to develop cosmetics and perfumes, a sector now strategic for the French group, took 1.06% to 598.60 euros.
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Sanofi must
The action of the French laboratory Sanofi dropped 1.88% to 85.14 euros, after the publication of its 2022 results which revealed a turnover below analysts’ expectations.
TotalEnergies scrutinizes Adani
The French energy giant TotalEnergies (+2.12% to 56.35 euros) on Friday judged its exposure to be limited due to its stakes in several joint ventures with the Indian group Adani, which has lost more than 100 billion dollars in cumulative market capitalization for several years. charges of accounting fraud.