The Paris Stock Exchange is up this Wednesday, partially reducing its fall yesterday, with LVMH among the strongest gains of the morning following the publication of its quarterly turnover.
The world number in the luxury industry and owner of Invest, up 2%, generated billings of 20.7 billion euros in the first quarter, in line with market expectations. Analysts in charge of LVMH say they are generally reassured by the group’s performance and its comments during the conference call that followed, given that sentiment around the sector has recently deteriorated. “ The first quarter could be the low point in the growth of LVMH’s fashion and leather goods division “, we say at Bryan Garnier. LVMH’s stock market rise allows Hermès to gain around 1%.
Around 9:25 a.m., the Cac 40 advanced 0.5% to 7,974.7 points, the day after a decline of 1.4%.
The Fed is far from finished with inflation
The rise in prices is taking longer than expected to slow down, which is not helping members of the US central bank gain confidence that inflation is falling back to the 2% target, said Jerome Powell, the chairman of the American Federal Reserve, during a forum devoted to economic relations between the United States and Canada. Echoing recent warnings from FOMC members, he stressed that the current level of monetary policy will likely remain in place until inflation approaches the target, suggesting the improbability of a cut. interest rates in the near future.
Investors cannot be surprised by the slight change in speech, given that inflation has exceeded expectations since the start of the year. For several months now, they no longer believe that the Fed will be able to make the three rate cuts that it projects in 2024. The markets have reduced the extent of the expected easing to less than two cuts, compared to six planned at the start of the year. ‘year. The first easing may not take place until September, but even market confidence in this timing is eroding. “The good news is that Jerome Powell doesn’t seem at all interested in raising interest rates, a scenario that analysts considered unlikely but have started to take a little more seriously,” according to CreditSights. Wall Street closed in scattered order, between -0.21% and +0.12%.
Geopolitically, tension in the Middle East remains high. Israel has pledged to respond to the weekend’s Iranian attack despite international calls for restraint. His war cabinet postponed a meeting until Wednesday to decide on his response. Oil prices, while waiting to see more clearly, are down, at 89.5 dollars per barrel of Brent.
In terms of values, Derichebourg fell 7% after considering it “unlikely” to achieve its annual profitability objective, due to the greater than expected financial impact of the November cyberattack and a “degraded economic situation”.
The Dutch ASML, one of the main suppliers of manufacturers
The Paris Stock Exchange is up this Wednesday, partially reducing its fall yesterday, with LVMH among the strongest gains of the morning following the publication of its quarterly turnover.
The world number in the luxury industry and owner of Invest, up 2%, generated billings of 20.7 billion euros in the first quarter, in line with market expectations. Analysts in charge of LVMH say they are generally reassured by the group’s performance and its comments during the conference call that followed, given that sentiment around the sector has recently deteriorated. “The first quarter could be the low point in the growth of LVMH’s fashion and leather goods division,” says Bryan Garnier. LVMH’s stock market rise allows Hermès to gain around 1%.
The Cac 40 advanced 0.5% to 7,974.7 points, the day after a decline of 1.4%.
The Fed is far from finished with inflation
The rise in prices is taking longer than expected to slow down, which is not helping members of the US central bank gain confidence that inflation is falling back to the 2% target, said Jerome Powell, the chairman of the American Federal Reserve, during a forum devoted to economic relations between the United States and Canada. Echoing recent warnings from FOMC members, he stressed that the current level of monetary policy will likely remain in place until inflation approaches the target, suggesting the improbability of a cut. interest rates in the near future.
Investors cannot be surprised by the slight change in speech, given that inflation has exceeded expectations since the start of the year. For several months now, they no longer believe that the Fed will be able to make the three rate cuts that it projects in 2024. The markets have reduced the extent of the expected easing to less than two cuts, compared to six planned at the start of the year. ‘year. The first easing may not take place until September, but even market confidence in this timing is eroding. “The good news is that Jerome Powell doesn’t seem at all interested in raising interest rates, a scenario that analysts considered unlikely but have started to take a little more seriously,” according to CreditSights. Wall Street closed in scattered order, between -0.21% and +0.12%.
Geopolitically, tension in the Middle East remains high. Israel has pledged to respond to the weekend’s Iranian attack despite international calls for restraint. His war cabinet postponed a meeting until Wednesday to decide on his response. Oil prices, while waiting to see more clearly, are down, at 89.5 dollars per barrel of Brent.
The effect of the cyberattack is still felt at Derichebourg
In terms of values, Derichebourg fell 7% after considering it “unlikely” to achieve its annual profitability objective, due to the greater than expected financial impact of the November cyberattack and a “degraded economic situation”.
The Dutch ASML, one of the main suppliers to semiconductor manufacturers, fell 5% after reporting a decline in its net profit in the first quarter to 1.22 billion euros, while the flow of new orders over the same period dried up to 3.6 billion euros. In its wake, STMicroelectronics lost around 0.7%.
ts of semiconductors, fell 5% after reporting a decline in its net profit in the first quarter to 1.22 billion euros, while the flow of new orders over the same period dried up to 3.6 billion euros. In its wake, STMicroelectronics lost around 0.7%.
