The Paris Stock Exchange gained 0.64% on Friday, driven by stimulus measures in China which stimulated luxury goods, and a further sharp drop in inflation in the United States in August.
The flagship index of the Paris Stock Exchange, the CAC 40, gained 49.70 points to settle at 7,791.79 points, the highest since June 12. On Thursday, the index jumped 2.33%.
Over the week as a whole, it gained 3.89%.
The French index was buoyed by new announcements on Friday from Beijing to revive its economy, with the reduction in the required reserve ratio (RRR) of banks, which should make it possible to inject some 127 billion euros of liquidity into the markets financial.
This announcement from the Chinese central bank 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 reductions in interest rates. cheaper interest and home loans.
“It has been a long time since the markets have reacted so favorably to announcements from the Chinese authorities. Investors want to believe it,” Nathalie Benatia, economist at BNP Paribas AM, explains to AFP.
This news particularly affected the luxury sector, which depends on the Chinese market, and has a prominent place on the Paris Stock Exchange.
The markets also welcomed on Friday the slowdown in the United States of the PCE price index, the inflation indicator favored by the American Federal Reserve, to + 2.2% over one year, compared to 2.5% in July. Over one month, inflation slowed to 0.1% compared to 0.2% in July.
“Everything is aligned for the markets to anticipate a further rate cut in October,” Nathalie Benatia, economist at BNP Paribas AM, explains to AFP.
In France, inflation fell to 1.2% year-on-year in September, a sharp decline compared to the 1.8% recorded in August.
On the bond side, the French ten-year yield fell significantly, falling to 2.91% around 4:20 p.m. GMT, compared to 2.97% the day before.
In comparison, the German rate at the same maturity, which is the benchmark in Europe, was worth 2.13%, compared to 2.18% at Thursday’s close.
Luxury and automobiles in good shape
The giant LVMH gained 3.67% to 703.40 euros, Kering 6.34% to 266.85 euros. Christian Dior advanced 4.08% to 662.50 euros. Hermès gained 0.68% to 2,232.00 euros.
The automobile industry is also benefiting from the Chinese recovery, like Stellantis (+3.99% to 14.55 euros), Valeo (+6.75% to 11.14 euros) and Renault SA (+3.61 % at 41.29 euros).
Trigano camps at the top
The French motorhome specialist jumped 11.44% to 119.80 euros on Friday, the best performance in the broader SBF 120 index, after the group reported a 12.8% rise in its sales over one year during its staggered 2023/2024 financial year.
Euronext CAC40
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