The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange ended up 0.51% on Tuesday, optimistic on the eve of a first rate cut since March 2020 by the American central bank (Fed), highly anticipated by investors.
The CAC 40 gained 37.98 points, to 7,487.42 points. On Monday, the leading Parisian index had closed down 0.21%.
The markets are mainly driven by expectations of a reduction in rates by the Federal Reserve (Fed) and “anticipate a 50 basis point drop” on Wednesday, following a monetary policy meeting of the American institution, noted Alexandre Baradez, head of markets at IG France.
However, the publication of economic indicators in the United States demonstrated the resilience of the American economy and could have led the markets to revise downwards the extent of this first, highly anticipated, cut in Fed rates.
If “the hypothesis of a drop” in rates “of 25 basis points remains alive”, the market has decided to “see the glass half full”, added Alexandre Baradez.
The index measuring US household consumption recorded a very slight increase in August compared to July, contrary to analysts’ forecasts, who were counting on a slight decline, according to the Market Watch consensus.
In addition, industrial production rose 0.8% month-on-month in August, its fastest pace since February, above the 0.2% expected.
Moreover, German investor morale continued to fall in September, more sharply than expected, dashing hopes of a rapid improvement in the health of Europe’s largest economy, whose industry is idling.
This indicator “clearly below the consensus (…) did not generate a defensive reaction from the Dax” in Frankfurt, which positively “influenced sentiment in Europe”, noted Mr. Baradez.
Luxury and industry in the green
“The rebound in Chinese indices (on the night of Monday to Tuesday) favored values in France which are exposed to China,” notably the luxury sector and industrial values, explained Alexandre Baradez.
Thus, “the values which are driving the CAC 40 are luxury goods in particular, while they have been suffering for several months,” he continued.
In the luxury sector, Hermès gained 1.58% to 1,926.00 euros, LVMH gained 0.68% to 607.70 euros and Kering gained 1.82% to 229.65 euros.
On the industrial side, ArcelorMittal recorded a rise of 2.15% to 20.95 euros and Saint-Gobain climbed by 2.70% to 80.78 euros.
EssilorLuxottica continues with Meta
The world number one in Italian-French optics, EssilorLuxottica, closed down 1.25% at 205.50 euros.
The owner of the Ray-Ban brand announced on Tuesday that it was continuing its collaboration with the American giant Meta with “a new long-term agreement” to develop “several generations of smart glasses”.
Euronext CAC40
