Sunday, May 22

Luxury offers breathing space on the Paris Stock Exchange (+0.55%)

The control room of Euronext, the company that manages the Paris Stock ExchangeERIC PIERMONT

The Paris Stock Exchange closed up 0.55% on Wednesday, driven by luxury stocks, which benefited from the positive reception given to the sector’s first annual results.

The CAC 40 star index rose 39.15 points to 7,172.98 points. The day before, it had fallen 0.94%.

The Parisian rating had however opened lower. It quickly recovered, going up 1%, before settling after the opening of Wall Street.

Struggling since the beginning of the year, the three luxury stocks in Paris, LVMH, Kering, Hermès have this time occupied three of the first four places in the index, in the wake of publications by the Swiss Richemont and the English Burberry.

However, the “headwinds” blowing for two weeks on the markets have not stopped, nuance Alexandre Baradez, analyst of IG.

On the one hand, “the theme of rising inflation”, leading to “normalization of monetary policies” and “higher rates” on the bond market, continues to be present.

The German 10-year rate rose above 0% in the morning, for the first time since May 2019. The French rate for the same maturity is at 0.38% and the American rate at 1.84%, which contributes to reducing the attractiveness of equities, which are more profitable but more risky.

The rise weighs more particularly on growth stocks, such as technology or luxury, two sectors which have taken the markets to their highest for two years.

This movement also comes at a time when “US economic indicators are a little below expectations,” said Mr. Baradez.

On the other hand, “China continues to tighten its health measures” to prevent the spread of Covid-19 as the Olympics approach, which has “an economic cost” and has weighed on luxury values ​​since the start of the Olympics. year, he continues.

These factors contribute to the “ceiling” of the CAC, even if the index is still not so far from its historic high reached on January 5 (7,384 points).

The old records of October 2014 broken by oil prices are also weakening companies, which may have to increase their prices or reduce their margins. However, the situation is a delight for oil stocks, such as TotalEnergies (+1.67% to 51.26 euros).

Dazzling luxury

Heavyweight on the Parisian coast, the luxury trio rebounded strongly: LVMH gained 3.67% to 697.70 euros, Hermès 2.39% to 1,368.50 euros and Kering 1.96% to 680.80 euros.

EssilorLuxottica also rose 1.42% to 174.56 euros.

The Brothers leave M6

The M6 ​​television group fell 8.06% to 17.10 euros, after the sale, at a price below market price, of the 5% of its capital held by the investment company CNP, belonging to the rich Belgian Brother family.

TF1, with which a merger is underway, plunged 7.38% to 8.48 euros.

  1. Euronext CAC40

Leave a Reply

Your email address will not be published.