The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange ended sharply down 1.14% on Tuesday on the eve of the publication of an inflation indicator in the United States and in the run-up to the European Central Bank's monetary policy meeting.
The flagship CAC 40 index dropped 85.36 points to settle at 7,394.78 points and ends a series of eight consecutive positive closes. On Monday, it gained 0.72%.
“Yesterday's good performers are rather in decline today,” observes Alexandre Baradez, head of market analysis at IG France.
LVMH, the world number one in the luxury sector and the largest market capitalization, lost 2.54% to 636.00 euros. Kering fell 2.21% to 241.05 euros and Hermès dropped 1.93% to 2,234.00 euros. L'Oréal, a cosmetics giant, but considered to belong to the same sector, fell 1.27% to 345.25 euros.
Companies in the luxury sector were driven on Monday by the announcements of members of the Political Bureau of the Central Committee of the Chinese Communist Party, a key decision-making body, who said they wanted to continue the revival of the country's economy and adopt “a monetary policy slightly softened.
However, the optimism generated by these announcements was short-lived.
Investors' attention will turn on Wednesday to the inflation figures for November in the United States. These data will give indications to the markets on the continuation of the monetary policy of the powerful American Federal Reserve (Fed), which will meet on December 17 and 18.
European investors will also turn on Thursday to the monetary policy decision of the European Central Bank (ECB).
The market mainly expects a cut of 0.25 percentage points in the ECB's main key rate.
Furthermore, the French political crisis continues to weigh on the market's state of mind according to Alexandre Baradez.
“The budgetary question is always sensitive, the CAC 40 is also waiting for more political clarity with a new Prime Minister and a new government,” specifies the head of market analysis.
On Tuesday, President Emmanuel Macron informed party leaders gathered at the Élysée of his wish to appoint a new Prime Minister “within 48 hours”, participants told AFP, confirming information from Le Parisien.
The Head of State brought together the heads of political parties, excluding RN and LFI, around the table to try to clear the way allowing him to appoint a Prime Minister likely to avoid further censorship.
On the bond market, the interest rate on the ten-year French loan reached 2.88%, almost unchanged from the day before.
Euronext CAC40
