The Paris Stock Exchange manages to maintain a small lead in the middle of the afternoon, the Cac 40 progressing by 0.52% to 6,550.61 points, in a market nevertheless deprived of its American compass, the places being closed this Monday in addition -Atlantic for Memorial Day. The trend is benefiting from the announcement of the gradual lifting of health restrictions in certain districts of Beijing, where shopping centers are reopening in particular, and in Shanghai, where the resumption of production in factories and more generally business activity has been slowed down. confirmed for this Wednesday. In the first metropolis, the number of Covid-19 infections fell to 12 this Sunday, against 21 cases on Saturday. In the second city, there were only 67 cases yesterday, against 122 the day before.
Operators are even more appreciative of the stimulus measures announced to revive the economy. Authorities in Shanghai said over the weekend that the city would speed up approvals for real estate projects and will increase its residents’ car ownership quota by 40,000 this year. Purchase taxes for certain passenger vehicles will be reduced and subsidies granted for the acquisition of electric cars.
Luxury in the spotlight
Luxury stocks, which account for more than 20% of the capitalization of the Cac 40, play an essential driving force in the good performance of the Parisian market. L’Oreal, Hermes, Kering and LVMH are thus displayed in the best performances of the Cac 40, with gains of 2% to 4.1%. Off the index, the producer of high-end cognacs Remy Cointreau takes almost 3%. Interparfums climbs 5%. Elsewhere in Europe, the Swiss Richemontowner of the Cartier brand, pandorathe Danish costume jewelery manufacturer Pandora and the German Hugo Boss are also circled.
Conversely, Sanofi loses 2.2%. The title of the pharmaceutical laboratory is weighed down by the announcement of the suspension of the trial, by the American health authorities (FDA) of the over-the-counter version of Cialis, a treatment against erectile dysfunction.
Inflation at a peak of 8.7% over one year in Germany
No statistics were logically on the program today in the United States. On the other hand, we expected new figures on inflation in Europe. In Spain, the rise in consumer prices accelerated in May, to 8.7% over one year, against 8.3% in April. There was also a sharp rise in Germany, where inflation peaked at a comparable peak of 8.7%, against 7.7% in April and well above the 8.1% expected by the consensus. This led the major European indices to reduce their lead in the afternoon. Early in the morning, the Cac 40 gained up to 1%.
For the rest of the week, the attention of operators will once again be on the United States, with the publication, on Friday, of employment figures for the month of May and, before that, the publication of the Fed’s Beige Book on Wednesday. It is also Wednesday that the central bank begins to reduce the size of its balance sheet.