(BFM Bourse) – The Paris index dropped 0.92% this Thursday as investors were busy analyzing the day’s American statistics. The appointment of Michel Barnier to Matignon did not have a real impact on the market.
The Paris Stock Exchange fell for the third consecutive session on Thursday. The CAC 40 fell 0.92% to 7,431.96 points, ending below 7,500 points.
Investors spent the second half of the session analyzing the day’s U.S. data, including labor market data. Weekly jobless claims fell last week to 227,000, while ADP’s monthly survey showed the U.S. economy added fewer jobs than expected in August, adding 99,000. But the survey is an imperfect prelude to the much more closely watched official data, which will be released Friday.
The ISM services survey for August was slightly better than expected, with the index coming in at 51.5, compared with the 51 expected by economists polled by Wall Street Journal economists.
“In short, the ISM services report does not present anything likely to influence the Fed’s decision (…) to cut (its rates, editor’s note) by 25 or 50 basis points (0.25 points to 0.50 percentage points), which remains dependent on the August employment report, which will be published tomorrow,” judges Capital Economics.
>> Access our exclusive graphic analyses, and enter the confidence of the Trading Portfolio
Luxury drags down the market
The market also factored in the appointment of the new French Prime Minister, former European Commissioner Michel Barnier. The announcement did not really have a real impact on the market. The CAC 40 very slightly reduced its losses at the time of his appointment and the yield gap between French and German debt, a measure of market stress, barely moved. Frédéric Rozier, manager at Mirabaud AM, nevertheless considers that this appointment is a positive element for the market, particularly with Michel Barnier’s “pro-European leaning”.
The CAC 40 was particularly penalized by the decline in luxury stocks, with LVMH losing 3.6% and Hermès 6.4%.
“At the moment, the tide is clearly against this sector, and the selling news from China is not good. Every day a new stock suffers particularly and today it is Hermès which had resisted well until now,” explains an analyst of the sector.
Outside of luxury, Air Liquide lost 3.1%, weighed down by a downgrade of its recommendation from Morgan Stanley, which went from “in line weighting” to “underweighting”.
On the contrary, Edenred rose by 1.7%, helped by Morgan Stanley, which moved from “in line weighting” to “overweighting” the stock.
Banks performed well, with BNP Paribas up 2.7% and Société Générale up 2.4%.
Outside the CAC 40, GL Events and Biomérieux gained 11.8% and 4.2% respectively after publishing their first-half results.
In other markets, the euro is stable against the dollar at $1.1084. Oil is climbing. According to Bloomberg, members of OPEC+, which brings together members of the Organization of the Petroleum Exporting Countries and their allies, are considering pausing production increases in view of the current market frenzy.
The November contract on North Sea Brent gained 1.3% to $73.64 a barrel, while the October contract on WTI listed in New York gained 1.1% to $69.98 a barrel.
Julien Marion – ©2024 BFM Bourse
Related News :