The Paris Stock Exchange was up 0.86% on Friday morning, rebounding from the losses of the previous two sessions, but luxury was slowing the stock market.
The star CAC 40 index advanced by 54.95 points to 6,326.49 points shortly after 08:00 GMT. Wednesday and Thursday, he had lost about 1.2%, weighed down by fears about the consequences of inflation on the economy.
But the Parisian coast was somewhat behind compared to other European indices, due to the decline of luxury heavyweights after the announcement of the results of the Swiss giant Richemont.
Equities rebounded slightly this morning after the Chinese authorities lowered one of their benchmark interest rates to support the real estate sector, commented Xavier Chapard of La Banque Postale AM’s research and strategy team.
However, he urges caution. There is already a lot of bad news priced in by the equity markets, as shown by valuations which are now below their pre-Covid level, he underlines.
The overall context is gloomy: fears about rising inflation (and its impact on consumption) as well as the more restrictive monetary policy of central banks (which could propel some economies into recession) continue to arouse the apprehension of investors, say Saxo Bank analysts.
It is in particular the poor results of the retail sector that worry investors because these companies are on the front line of seeing a drop in consumption.
At this stage, the Parisian coast has lost 3.20% since the beginning of the month and more than 11.5% since the beginning of the year.
Luxury fails with Richemont
French heavyweights LVMH (-0.63% to 565 euros) and Herms (-1.47% to 1,039.50 euros) were down after the results of the Swiss luxury giant Richemont: the owner of the Cartier jewelry house reported a surplus of operating below analysts’ forecasts, according to Bloomberg.
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