On Tuesday morning, the Paris stock exchange rallied 1.56%, buoyed by luxury stocks and a breeze of optimism as the meeting of the US central bank, the Fed, approaches.
The CAC 40 stellar index jumped 98.56 points to 6,365.33 points around 10 am, in a session where changes could be exacerbated by the absence of some operators due to All Saints’ Day. On Monday, the Parisian rating closed steadily and ended an October month with a sharp rise of 8.75%, very close to its best performance in two years, recorded last July.
The main event of the week is the monetary policy meeting of the US central bank, the Fed, which begins on Tuesday and whose conclusion will be presented on Wednesday after the close of European markets.
If a new and fourth 75bp hike in key rates is considered confirmed by analysts, it is mainly the press conference of Fed boss Jerome Powell that investors will scrutinize for clues about the central bank’s future intentions.
“The Fed could announce the end of the aggressive rate hike and signal a slower rate hike to enter the final stage of policy tightening, before taking a break,” said Swissquote analyst Ipek Ozkardeskaya.
However, there is a risk that such a speech will “lift the bond and equity markets”, and that is “exactly what the Fed does not want to happen”, because such a move “would increase (…) inflation, “continues the analyst.
Luxury enhanced by a market item
Kering (+ 4.01% to € 482.25), Hermès (+ 3.62% to € 1,358) and LVMH (+ 3.44% to € 660.20) jumped to the top of the CAC 40, after a tweet published by a Chinese equity analyst referring to the formation of a “reopening committee” in China and March 2023 as the date of exit from the zero-Covid policy.
The sales of the luxury giants, of which China is an important market, have been affected by the closure of shops and confinements in the country in the face of the Covid-19 epidemic since 2020.
The FDJ gets into poker
La Française des Jeux has obtained approval to offer “online circular games”, and hence poker, according to a decision by the National Gaming Authority published in the Official Gazette Tuesday. The stock took 1.61% to 33.53 euros.