Cac 40: The Paris Stock Exchange signs its best weekly performance since March

Cac 40: The Paris Stock Exchange signs its best weekly performance since March

(BFM Bourse) – Hoping for a moderation in inflation, investors returned to equities this week, despite some stinging warnings from retail players on both sides of the Atlantic about the consumer appetite.

In strong progression Thursday in a narrow market given the absence of many Ascension players (+1.78% with less than 2.8 billion euros traded), the Parisian market was able to prolong the upward movement on Friday . In a finally solid business volume of 3.4 billion euros, the tricolor index increased its gains throughout the day to end at 6,515.75 points, or + 1.64% better. Enough to bring the gain over the week to +3.67%, i.e. the best weekly performance since that of March 14th.

At the same time, the main indices on Wall Street were also accelerating to end an exceptional downward trend, since the S&P 500 had ended down in each of the previous seven weeks (unheard of since 2002) and the Dow Jones during the last eight (an unprecedented sequence for almost a century!). This week, the Fed came this week to support the rebound through the publication of the “minutes” of its last monetary policy meeting. This report showed that the governors of the United States central bank had discussed the possibility of pausing rate hikes at some point this year… The consumer price index PCE (Personal Consumption Expenditures, closely watched by the Fed) announced on Friday provided an additional boost by showing a slowdown to +6.3% in April, from +6.6% in March

Luxury values ​​on the rebound

On the Parisian market, it is above all luxury stocks that have guided the recovery movement after having fallen to lows for more than a year. Just behind Alstom (+4.7%, topped the CAC list at the finish), Kering (+4.6%) Hermès (+4.5%), L’Oréal (+4.1%) and LVMH (+3.9%) led the dance.

Related to luxury, Pernod Ricard climbed nearly 2.9%, also supported by a note from Bernstein (who also raised his opinion on the title and that of Rémy Cointreau, which took 3%).

On the other hand, only a few defensive stocks such as Sanofi (-1.2%) or Orange (-0.9%) fell significantly, Unibail (-2.8%) posting the worst performance of the 40 flagship stocks after a signal concern about consumption.

A disturbing warning from Maisons du monde

Maisons du Monde (-27%) indeed delivered an alarming message this morning with regard to household consumption, revising to a three-week gap the objectives that the firm had nevertheless reiterated at the beginning of May. It is now “conceived that inflation in Europe will remain at high levels until the end of the year, which will weigh on the level of consumer confidence”, in particular on demand in the furniture sector. and decoration, indicates the group from Nantes, a few days after the warnings across the Atlantic from players as essential as Walmart or Target.

As for biotechs, a sector whose fundamentals depend very little on the overall economic situation but above all on individual clinical advances, AB Science benefited from a notable advance towards potential marketing authorization in Canada, and garnered 3.9%. Very small capitalization of the sector, Noxxon Pharma flew away of 66% with the announcement of the presentation to come from data in the treatment of the gioblastoma (cancer of the brain) at the time of the congress of the ASCO.

Oil prices were stabilizing towards $114 ($113.80 on WTI at the end of the day, 114.20 for Brent), while OPEC members and their allies should be content next week to reaffirm the trajectory a moderate re-increase in production, according to sources interviewed by Reuters. After a drop in production of around 10 million barrels per day in the spring of 2020, the enlarged cartel aims to restore its previous production by steps of 400,000 additional barrels each month, a rhythm implying that production will not be fully restored until after nearly two years. In fact, several producer states are struggling to revive their production.

On the foreign exchange market, the euro returned 0.25% to 1.0702 dollars after a recovery of nearly 4% in the space of the last fortnight.

Guillaume Bayre – ©2022 BFM Bourse