The Paris Stock Exchange fell 0.24% Friday morning, pulled down by a decline in its largest capitalization, LVMH, while investors continue to digest the news of the week.
The flagship CAC 40 index fell by 19.54 points to 8,160.18 points around 9:45 a.m. On Thursday, it increased by 0.22% to 8,179.72 points but its acceleration at the start of the session allowed it to reach 8,229.25 points, a new session record.
The three indices of the New York Stock Exchange also hit new records on Thursday after those of the day before, propelled by a more optimistic tone from the Federal Reserve (Fed) on the evolution of inflation.
This week, central bank meetings followed one another: American Federal Reserve, Bank of England, Bank of Japan, Swiss National Bank, Bank of Norway.
While the Swiss National Bank is the only one to have lowered its rates, other monetary institutions have indicated that a reduction in borrowing costs is coming soon.
Yesterday, the Swiss National Bank’s interest rate cut provided further impetus, recalls independent analyst Andreas Lipkow, who adds that things are calming down as the reporting season is slowly coming to an end.
As for the Fed, it has reassured the markets because, as we anticipated, it has not changed its posture despite higher-than-expected inflation figures since the start of the year and continues to anticipate declines current rate for 2024, comments Xavier Chapard, from the LBPAM research and strategy team.
At the same time, economic indicators showed weaknesses in Germany and France, but robustness in the American economy.
Friday’s agenda is sparse, with a few indicators in the United Kingdom and Germany, as well as a speech by the chief economist of the European Central Bank (ECB) Philip Lane on inflation and monetary policy.
On the bond market, the interest rate on the ten-year French government bond fell to 2.83% around 9:45 a.m., compared to 2.85% at Thursday’s close.
LVMH shakes up its management
The luxury group LVMH announced Thursday the departure of its deputy general director, Toni Belloni, number two in the group after CEO Bernard Arnault. His functions will be carried out by Stphane Bianchi, current boss of the watches and jewelry division.
Its action fell 2.43% to 827.30 euros on Friday.