The Paris Stock Exchange ended a turbulent week with a drop of 0.82% on Friday, the good results of LVMH not hiding the concerns of investors about a tightening of monetary conditions of the American Federal Reserve.
The star CAC 40 index fell by 57.92 points to 6,965.88 points, ending three sessions of increases. Over the week, it fell 1.45%, weighed down by its fall of nearly 4% on Monday. Since January 1, it has lost 2.62%.
The Parisian rating had however started on the rise and approached 7,050 points, before turning around and losing nearly 3% at the worst of the session. She then recovered.
January is chaotic, describes AFP Ilana Azuelos-Bossard, deputy director at Kiplink Finance.
We knew the markets were going to react badly when the US Federal Reserve was going to raise its rates, which it announced for March during its meeting in midweek, she explains.
Entirely focused on the fight against inflation, which reached 5.8% in one year in the United States according to the PCE index published on Friday, the institution has changed its tone. As a result, the number of increases in its key rates during the year, anticipated by market analysts, continues to increase.
The turbulence on the stock market indices since the materialization of this turning point has not caused the Fed to deviate from this course for the moment, after 18 months in which it has multiplied measures to support prices. Bye bye Santa Fed, summarize the Edmond de Rothschild analysts.
We thought that the results of companies would support the course more but the market sees the glass half empty, continues Ms. Azuelos-Bossard.
Investors also learned about an avalanche of macroeconomic indicators. If French growth reached 7% in 2021, that of Germany had to, with a drop of 0.7% in the fourth quarter.
Moreover, US consumer confidence deteriorated more than expected in January according to data from the University of Michigan.
LVMH always shines brighter
LVMH shares rose 3.23%, to 716.40 euros, after the world’s number one luxury brand posted insolent form in 2021, with annual results well beyond those of the pre-pandemic period, which make them confident for 2022. Kering (-0.80% to 647.80 euros) and Herms (+0.23% to 1,295.50 euros) have benefited little from the momentum.
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The board of directors of the French telecoms giant endorsed the choice of Christel Heydemann to succeed Stphane Richard as CEO. The title rose by 1.41% to 10.47 euros and signed the best performance of the index over the week (+5.81%).
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JCDecaux at the top of the bill
JCDecaux soared 13.38% to 24.24 euros after publishing a sharp increase in turnover in 2021 on Thursday.
Respite for retirement homes
After four days when prices were massacred due to the publication of a book denouncing their practices, retirement homes took advantage of a respite: Korian rebounded 8.98% to 20.76 euros (-24.89% over the week), Orpea by 5.92% 41.88 euros (-49.29%) and LNA Sant by 3.63% 41.45 euros (-9.10%).
Technology stocks in distress
Dassault Systmes lost 8.81% to 41.10 euros over the week (+0.10% on Friday), a loss of more than 20% since January 1, as technology stocks suffered from the context of rising rates. Capgemini and Teleperformance also lost between 4 and 5% over the week.