Paris stocks rallied 0.80% on Wednesday, the sixth increase in eight sessions in 2023, in an upbeat environment ahead of December US inflation data expected on Thursday.
The top CAC 40 index rose 55.05 points to 6,924.19 points the day after profit-taking that had sent it down 0.55%. The Paris coast is thus approaching the threshold of 7,000 points, more than exceeded since mid-February 2022.
For Alexandre Baradez, IG France analyst, there is a part of mimicry and fear of losing the rallythe bullish wave of stock market indices, in line with the trend observed since the beginning of the year.
Easing inflation and China’s reopening of the economy have supported markets since the start of the year. European indices are also benefiting from the mild climate and falling gas prices, adds Alexandre Hezez, stratgist of the Richelieu group.
However, the themes of China, lower energy prices and slowing inflation were already priced into the markets at the end of the year and there hasn’t been any significant improvement since the beginning of the year. anne, recalls Alexandre Baradez, who is therefore not entirely convinced of the merits of the current jump.
Investors are eagerly awaiting the US December CPI Inflation Gauge, due out on Thursday, to see confirmation of the slowdown.
Analysts expect prices to stagnate over a month and slow over a year to 6.5%, which they believe would allay fears of further monetary tightening by the US central bank (Fed) .
In France, market participants may be clinging to good news, with the Banque de France indicating on Wednesday that the French economy continued to perform well and is expected to stabilize in January, following slight growth at the end of 2022.
Gold classification for LVMH
The market capitalization of French luxury giant LVMH hit €389 billion on Wednesday, an all-time high higher than its last peak in January 2022. The first company in the CAC 40, the company is also the largest market capitalization in Europe and it is one of the fifteen largest in the world.
LVMH also announced on Wednesday the appointment of Delphine Arnault, daughter of Bernard Arnault, as CEO of Christian Dior, while Pietro Beccari, who held this position, will take the helm of Louis Vuitton, the world’s leading luxury brand.
The stock gains 2.12% to €772.30, a record also for the stock.
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In its wake, Herms rose by 0.87% to 1,620.50 euros and Kering by 3.64% to 543.40 euros. Herms’ market capitalization reaches €172 billion, close to the November 2022 record of €177 billion.
Orpea goes back step by step
Shares of Ehpad Orpea group jumped 14.30% to 8.65 euros on Wednesday and is up 40% since the beginning of the year. This increase is fueled mainly by speculation on an entry into the capital of Caisse des Dépôts.
On Tuesday, Caisse des Depts (CDC) director general Eric Lombard confirmed before the National Assembly’s Finance Committee that discussions were ongoing.
According to the newspaper Les Echos, the CDC would be ready, in collaboration with institutional investors, to provide at least the majority of the billion and a half euros hoped for by the Ehpad group for the bailout.
In 2022, the group’s stock fell 93% after the release of an investigative book accusing the company of mistreatment of its residents.