The Paris Stock Exchange ended up 0.62% on Friday, helped by the rebound in luxury stocks but failed to make up for the losses accumulated during the first four sessions.
The star CAC 40 index gained 44.67 points to 7,240.77 points. It ended the week with a drop of 0.77%, but maintained a gain of 11.85% over the year.
It’s a classic readjustment session after several days of pressure and decline, explains AFP Frdric Rozier, portfolio manager at Mirabaud.
Overall, the market is coming out weakened according to him, in particular due to the declines in large caps, such as LVMH in France or Apple in the United States, which had carried the gains of the indices in the first six months of the year. .
Little stock market information was expected by investors during the session. In France, industrial production rebounded in July but the outlook for French industry remains very weak, nuance Charlotte de Montpellier, economist at ING.
The weakness of the economy in France as in Europe can be seen as an opportunity for investors if this prompts the European Central Bank to soften its monetary policy.
But this vision is now less dominant on the markets, in particular because of oil prices: the recent rise in energy prices could, if confirmed, undermine the majority opinion according to which increases in interest rates interest would be behind us, explains Gilles Guibout, head of European equities at Axa IM.
Oil prices reached their highest level of the year during the week, with the extension of the cuts decided by Saudi Arabia and Russia.
Market participants are preparing for the next round, dominated by central bank policies.
Concerns are growing over the prospect of a monetary policy error, which could undermine prospects for economic recovery by the end of the year, says CMC Markets analyst Michael Hewson.
On the bond market, the interest rate of the French 10-year loan, the maturity which refers, ended at 3.14%, slightly up from Thursday, and against 3.07% at the end of last week. .
Luxury rebounds
Damaged during the week by new signs of economic difficulties in China and less positive analyst assessments, luxury companies, heavyweights on the Parisian coast, pulled the CAC 40 index upwards.
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LVMH took over 2.20% 740 euros, but remains down 4.61% over the week. Kering took over 1.48% 469.70 euros (-3.91% over the week), and Herms 0.82% 1,849.40 euros (-1.93% over the week).
In cosmetics, L’Oral gained 1.47% to 404.25 euros.
Change in the SBF 120
Three companies will leave the expanded index of the Paris Stock Exchange, the SBF 120, the stock market operator Euronext announced on Thursday: Antin infrastructures (-0.76% 13.13 euros), Altarea (+ 1.44% 91.80 euros ) and Casino (+0.86% 2.11 euros, but -25% over the week).
The three companies entering the index are Lectra (+2.85% 28.90 euros), in the industry service, Argan (+1.23% 73.80 euros), a logistics warehouse manager, and X-Fab (+0.77% 9.79 euros), a Belgian manufacturer of semiconductors.