Cac 40: The Paris Stock Exchange recorded its best weekly performance since March

Cac 40: The Paris Stock Exchange recorded its best weekly performance since March

(BFM Bourse) – In hopes of easing inflation, investors have returned to equities this week, despite some harsh warnings from retailers on both sides of the Atlantic about consumer appetite.

With strong developments in the narrow market on Thursday due to the absence of many Ascension players (+ 1.78% with less than 2.8 billion traded euros), the Paris market was able to extend Friday’s upward move. In a finally solid trading volume of 3.4 billion euros, the tricolor index increased its gains during the day and ended at 6,515.75 points, or + 1.64% better. Enough to increase the profit for the week to + 3.67%, the best weekly performance since March 14.

At the same time, the main Wall Street indices were accelerating to end an exceptional downtrend, as the S&P 500 ended in decline in each of the previous seven weeks (unheard of since 2002) and the Dow Jones over the past eight (unprecedented sequences for almost a century!). This week, the Fed came this week to support the recovery by publishing a “minutes” of its last monetary policy meeting. The report showed that the governors of the central bank of the United States discussed the possibility of suspending the rate increase sometime this year … The consumer price index PCE (Personal Consumption Expenditures, closely monitored by the Fed), which announced on Friday, provided additional information. strengthening by slowing to + 6.3% in April from + 6.6% in March

Luxury values ​​on reflection

In the Paris market, it is mainly luxury stocks that, after a decline of more than a year, led to a recovery. Kering (+ 4.6%) Hermès (+ 4.5%), L’Oréal (+ 4.1%) and LVMH (+3 , 9%).

In terms of luxury, Pernod Ricard climbed by almost 2.9%, which was also supported by a note from Bernstein (who also raised his opinion on the title and Rémy Cointreau, who won 3%).

On the other hand, only a few defensive stocks such as Sanofi (-1.2%) or Orange (-0.9%) fell sharply, with Unibail (-2.8%) showing the worst performance out of 40 flag shares after signaling concerns about consumption.

A disturbing warning from the Maisons du Monde

Maisons du Monde (-27%) actually issued an alarming report on household consumption this morning and revised the target three weeks later, which the company nevertheless repeated in early May. Inflation in Europe is now expected to remain high until the end of the year, which will have an impact on the level of consumer confidence “, especially on demand in the furniture sector and decorations, says the Nantes group, major players such as Walmart or Target.

In terms of biotechnology, an industry whose foundations depend very little on the overall economic situation, but above all on individual clinical progress, AB Science has benefited from significant progress towards potential registration in Canada, gaining 3.9%. A very small capitalization of the sector, Noxxon Pharma flew 66%, announcing that the presentation came from data on the treatment of gioblastoma (brain cancer) at the time of the ASCO Congress.

Oil prices have stabilized toward $ 114 ($ 113.80 at the end of the day, $ 114.20 at Brent), while OPEC members and their allies are expected to settle next week for saying that, according to the sources they interviewed, reaffirms the trajectory of a slight resurgence. Reuters. Following a drop in production of around 10 million barrels per day in spring 2020, the expanded cartel aims to restore its previous production by a further 400,000 barrels each month, a rhythm that suggests that production will not be fully resumed for almost two years. In fact, several producer countries are trying to revive their production.

In the foreign exchange market, the euro returned 0.25% to $ 1.0702 after recovering by almost 4% over the past fortnight.

Guillaume Bayre – © 2022 BFM Bourse

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