The Paris Stock Exchange takes a breather the day after clear gains. It is evolving slightly this Friday, September 27, the day after nets gainsin the wake of new announcements from Beijing for revive the Chinese economy and inflation indicators in the euro zone, while waiting for American data. The market’s flagship index, the CAC 40, increased by 0.19% around 10:05 a.m., gaining 14.74 points, to 7,756.28 points.
On Thursday, it jumped 2.33% to settle at 7,742.09 points, the highest since June 12. This sharp increase is explained in particular by the surge of luxury players, LVMH and Hermès having jumped by more than 9%. Paris is still benefiting a little from the momentum of Chinese stock indices: Hong Kong thus signs its best weekly results since 1998, boosted by new announcements from China on Friday to revive its economy, by reducing the rate of compulsory reserves of banks.
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China recognizes “problems” in its economy
This rate (RRR) is a ratio which determines the share of deposits that banks are required to keep in their coffers. Its reduction should allow them to lend more to businesses to support the real economy. This should make it possible to inject some 127 billion euros liquidity on the financial markets. This announcement from the Chinese central bank on the RRR comes the day after a meeting of Chinese leaders who recognized the existence of “problems” in the country’s economy and after a series of measures unveiled this week, including interest rate reductions and cheaper home loans.
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Furthermore, numerous economic indicators are on the session’s agenda. In France, inflation slowed significantly in September, to 1.2% over one yeardown sharply compared to the 1.8% inflation recorded in August. In Spain, it fell to 1.5% in September year-on-year, compared to 2.3% the previous month. The US PCE inflation indicator, considered the favorite of the US central bank (Fed), is due to be released at 2:30 p.m. GMT. “The PCE index should remain unchanged at 0.2% on a monthly basis and show a slight increase – from 2.6% to 2.7% – on an annual basis”said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
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LVMH in good shape
The world number one luxury company announced Thursday, after the close of the European stock markets, a 10% stake in a holding company controlled by Moncler CEO Remo Ruffini, who owns 15.8% of this Italian group known for its down jackets. high end. Friday, LVMH rose 2.79% to 697.40 euros, the day after a jump of more than 9%. In Milan, Moncler soared by more than 9.5%.
Schneider and Legrand fall
The French electrical equipment giant Schneider Electric fell 2.62% to 238.20 euros, after closing the day before at its all-time high (244.55 euros). Good performances on the stock market can result in profit taking during the following session. Legrand, manufacturer of electrical materials and equipment, dropped 0.28% to 105.30 euros, after also setting a closing record the day before (105.60 euros).
Airbus reorganizes and excludes any social plan
The aircraft manufacturer announced Thursday that it would reorganize its production by focusing on “fundamentals” to maintain the ramp-up, while excluding any «plan social». The stock fell 0.77% to 133.30 euros.
