The Paris Stock Exchange returns above 7,500 points, the highest since April – 08/12/2023 at 6:29 p.m.

The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)

The Paris Stock Exchange driven by luxury ended sharply up 1.32% on Friday, returning to a level not seen since the end of last April, also reassured by the resilience of American economic activity.

The flagship CAC 40 index gained 98.03 points and closed above the threshold of 7,500 points for the first time since April 25. The day before, the Parisian rating ended in a slight decline (-0.10%), at 7,428.52 points.

Over the week, the Parisian rating increased by 2.46%, its fourth consecutive week of increase.

The American job market was much stronger than expected in November, with 199,000 job creations, up from 150,000 in October, according to figures published by the Labor Department.

“This figure supports the idea that the inflation trajectory is under control,” comments David Kruk, head of trading at La Financière de l’Echiquier.

As for the unemployment rate, it is falling again, to 3.7%, after an increase in October.

The markets reacted well to this publication because it reinforces the “Goldilocks scenario” of a “controlled inflation trajectory and moderate growth”, according to David Kruk.

For Christophe Boucher, investment director of ABN AMRO Investment Solutions, the American employment figures are in fact “consistent with a soft landing scenario” for the American economy “and should not encourage the Federal Reserve to lower interest rates in the near future.

In response, on the bond market, sovereign debt rates started to rise again. The yield on the ten-year French government bond stood at 2.83% around 5:55 p.m. (4:55 p.m. GMT), compared to 2.73% at Thursday’s close.

For Mr. Kruk, this rebalancing is normal given that “rates relaxed incredibly in November and early December.” For many analysts, the markets got a little excited after the latest falling inflation figures in the United States, anticipating several cuts in key interest rates from the American central bank.

Luxury in top form

Luxury stocks, a heavyweight on the Parisian market, rose significantly on Friday, benefiting from evidence of the resilience of the American economy, an important market for the sector.

The first capitalization of the Paris Stock Exchange LVMH experienced the largest increase of the session: +3.28% to 739.10 euros. Kering gained 2.58% to 413.80 euros and Hermès 1.48% to 1,982.40 euros.

Euronext CAC40

Euronext CAC40

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