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Paris (AFP) – The Paris Stock Exchange timidly resumed its march forward on Wednesday, helped by the luxury sector, a positive close on Wall Street the day before, the reopening of China and the prospect of a further decline in US inflation.
Around 9:54 a.m., the flagship CAC 40 index took 0.32% to 6,891.13 points the day after profit taking which had caused it to fall by 0.55%.
“It is clear that the debate at the start of the year is becoming increasingly focused on the possibility of a soft landing for major economies. It is fueling risk taking in the markets and falling interest rates to term,” observes Sebastian Paris Horvitz, analyst at LBPAM.
This, he explains, “is linked to the expectation of a much faster decline in inflation than expected and a certain resilience in activity”.
The US Consumer Price Index (CPI) for December due out on Thursday should support the inflation trajectory.
Analysts expect prices to stagnate over a month and slow down over a year, which would allay fears of further monetary tightening by the US Central Bank (Fed).
“This contrasts with the always harsh discourse of central bankers who persist on the idea that monetary policy must become more restrictive in order to succeed in converging inflation towards their objectives”, objects Mr. Horvitz.
On Tuesday, one of the Fed’s governors, Michelle Bowman, said that the Fed had “still a lot to do” in the fight against inflation and that once rates had reached a sufficiently restrictive level, they would stay there. for a certain time.
The reopening by China which strengthens the economic outlook supported the trend in all Asian and European markets.
In France, market operators could cling to good news, the Banque de France having indicated on Wednesday that the French economy continued to hold firm and that it should register a stabilization in January, after a slight growth at the end of 2022. .
Reshuffle at the top of Dior and Vuitton
The luxury giant on Wednesday appointed Delphine Arnault, daughter of Bernard Arnault, CEO of the house of Christian Dior while Pietro Beccari, who held this position, will head the house of Louis Vuitton, the world’s leading luxury brand.
The title gained 1.88% to 770.50 euros around 10:05 a.m. For RBC Capital Markets RBC, these changes are seen as “positive for the two Louis Vuitton and Dior brands, and they underline the strength of the talent pool and the long-term custodial approach at LVMH” which constitutes “one of the advantages distinctive competitive features of the group”.
“It also reflects the ongoing leadership transition within the Arnault family,” a note said.
In its wake, Hermès gained 1.12% and Kering 1.32%.
Airbus delivered less than expected
The Airbus share yielded 0.24% to 114.84 euros. The European aeronautical group delivered 661 planes in 2022, far from the 720 initially planned, due to difficulties for suppliers to ramp up, and recorded 820 net orders during the last year.
Thales will not make an offer for Evidian
The defense and technology group Thales (+0.35% to 116 euros) said on Tuesday that it was not interested in taking a stake in Evidian, the company that Atos is to create to house its cybersecurity activities in particular.
© 2023 AFP