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The Paris Stock Exchange returns to caution, below 7,000 points
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The Paris Stock Exchange returns to caution, below 7,000 points
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The Paris Stock Exchange turned back on Friday morning (-0.69%) just after opening cautiously in the green, feverishness taking over despite a solid luxury sector and indicator in support.

At 9:37 a.m., the CAC 40 index fell below 7,000 points, to 6,975.36 points, after three consecutive sessions in the green following two sessions of strong declines.

A 7% growth in French GDP in 2021, unheard of for 52 years, as well as the breathtaking results of the heavyweight of the LVMH rating were not enough to preserve the trend.

The nervousness of investors is causing notable variations this week on the indices which have made significant reversals in recent sessions.

The US Federal Reserve (Fed) has signaled that it will begin its process of monetary policy tightening in March without specifying the extent of the rate hike envisaged or the timetable for the reduction of its monetary support.

Investors realize that if high inflation persists, more aggressive tightening is to be expected.

“By wanting to keep free rein to adjust monetary policy according to the evolution of growth and inflation, Jerome Powell (the president of the Fed, editor’s note) contributed to maintaining uncertainty in the market”, commented Christopher Dembik, director of strategy and macroeconomics at Saxo Bank.

Therefore, he warns, “as long as operators do not have a strong conviction regarding the evolution of rates in the United States, we must expect the markets to continue to drop”.

Champagne for the pillar of luxury

LVMH shares climbed 3.33% to 717.10 euros in early trading, after the world’s number one luxury goods company posted insolent form in 2021, with annual results far beyond those before -pandemic, which make him “confident” for 2022. Kering (+1.06% to 659.90 euros) and Hermès (+0.89% to 1,304 euros) benefited from this solidity.

The values ​​of the champagne sector also progressed, but to a lesser extent. After a year 2020 very affected by the pandemic, the champagne houses Vranken-Pommery Monopole (+0.28% to 18.10 euros) and Lanson-BCC (+0.34% to 29.10 euros) saw their sales progress in 2021, with good export figures.

Christel Heydemann on the edge of Orange

The board of directors of the French telecoms giant must endorse the choice of Christel Heydemann to succeed Stéphane Richard, convicted in November in the Tapie / Credit Lyonnais case, as general manager. The title took 0.12% to 10.34 euros at 9:24 a.m.

The Paris Stock Exchange returns to caution, below 7,000 points
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