The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange advanced by 0.74% on Wednesday, driven by the heavyweight LVMH, which allowed the Parisian stock to progress a little more than other European markets, hesitant given economic uncertainties.
The flagship CAC 40 index rose by 56.90 points to 7,989.51 points around 9:50 a.m. On Tuesday, it lost 1.40% to finish at 7,932.61 points, the lowest since February 29.
The New York Stock Exchange, for its part, ended in mixed order on Tuesday, generally ignoring the uncertainty in the Middle East, the rise in bond rates and cautious remarks from the president of the American central bank (Fed).
“The market remains on the defensive this week, still impacted by the slightest expectations of rate cuts by the Fed and by the risks of escalation of tensions between Israel and Iran,” comments Xavier Chapard, strategist at LBPAM.
The head of the Fed, Jerome Powell, indicated that “the latest macroeconomic data” had “clearly not reinforced (the) confidence” of the members of the institution regarding the return of inflation towards its long-term objective, or 2% per year.
“Recent data … indicates that it will likely take longer than expected to achieve this confidence,” said the Fed chairman, who added that “if high inflation persists, we can maintain the current level (of rates) for as long as necessary.
On the bond market, the interest rate on the 10-year French government bond stood at 3% around 07:50 GMT. On Tuesday it finished above 3% for the first time since November 30.
As for the European Central Bank (ECB), its President Christine Lagarde affirmed Tuesday in Washington that the ECB was “dependent on data but not on the Fed” with regard to the timetable for rate cuts, in particular.
The geopolitical situation in the Middle East continues to be followed by investors. Israel wants to make Iran pay the price for its unprecedented attack on Israeli territory, despite international calls for restraint.
LVMH sluggish but reassuring
The number one luxury brand LVMH announced on Tuesday sales down 2% year-on-year in the first quarter, to 20.7 billion euros, in line with analysts’ forecasts, suffering from an unfavorable comparison compared to the context. of 2023 and in particular a slowdown in Chinese consumption.
“Management confirmed that March transactions in the fashion and leather goods section are in line with the first quarter average, which should provide some reassurance about the stability of demand trends,” emphasize Jefferies analysts.
“The growth in turnover in the first quarter – to be put into perspective with recent fears in January that revenues would be down – is a crucial and significant step towards a soft landing scenario for the year 2024 for LVMH and the sector as a whole,” said Luca Solca, analyst for Bernstein.
LVMH shares rose 2.58% to 801.80 euros.
Derichebourg attacked
The Derichebourg recycling and cleaning group announced on Tuesday that a cyberattack carried out in November 2023 caused it to lose 15 to 20 million euros. Its stock fell 5.66% to 4.13 euros.
Vinci flies to Edinburgh
The French construction and infrastructure giant Vinci announced on Wednesday an agreement to buy 50.01% of the shares of Edinburgh airport “for a price of 1.27 billion pounds sterling”, or nearly 1.5 billion euros. Its action gained 0.94% to 113 euros.
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