Home » News » The Cac 40 pulled by new luxury records ahead of retail sales in the United States, Market news

The Cac 40 pulled by new luxury records ahead of retail sales in the United States, Market news

The Paris Stock Exchange continues to advance, supported by a new series of records in the luxury sector. Investors remain positive on equities, hoping that good corporate results and still accommodating monetary policies will continue to support growth. The President of the ECB reassured Monday by repeating to MEPs that she did not anticipate a rate hike next year. On the economic front, the growth of the euro area economy amounted to 2.2% in the third quarter, according to the second estimate of GDP which confirms the first. On a year-over-year basis, it is also confirmed at 3.7%.

However, activity remains limited with barely 820 million euros traded on Cac 40 stocks pending statistics on retail sales and industrial production in the United States. Walmart and Home Depot’s quarterly results will also give an indication of consumer mood a week away from the start of year-end shopping. The market is also awaiting Joe Biden’s decision on the appointment of the next Fed chairman. An ad is ” imminent According to Sherrod Brown, chairman of the Senate Banking Committee. The US President recently auditioned Jerome Powell and Governor Lael Brainard, also seen as “dovish”.

Beginning of dialogue between Beijing and Washington

Around noon, the 40 takes 0.31% to 7,150.42 points, after reaching a new all-time high at 7,158.36. December futures contracts on American indices oscillate between equilibrium, for the Dow Jones, and a decline of 0.2% for the Nasdaq 100.

While they were not waiting for a major advance in the virtual meeting between Joe Biden and Xi Jinping, observers welcome the resumption of dialogue between the two leaders. The American and Chinese presidents spoke for more than three hours last night, evoking in particular the need to stabilize relations between their two countries. Tense issues such as Taiwan and human rights were discussed, as were trade relations. The meeting ended with a call from both parties for more cooperation, while the US president insisted on putting in place common sense safeguards to prevent the competition from turning into conflict and called to keep the lines of communication open, according to a statement from the White House.

New records for LVMH, Hermès and L’Oréal

Dry increased by 2.7%. Its Gucci subsidiary estimated that its 2021 turnover should return to or slightly exceed its pre-pandemic levels. HSBC has raised its recommendation on the title to “keep” to “buy” and increased its price target from 820 to 850 euros. LVMH (+0,9%), Hermes (+ 0.8%) and L’Oreal (+ 0.1%) set new records.

Pernod Ricard (+ 0.8%) also signs a higher while the British Diageo indicated that it will emerge from the health crisis with medium-term growth above expectations.

A l’inverse, Interparfums yields 1.2% after forecasts lower than analysts’ expectations. The group announced to expect a turnover of between 560 to 570 million euros in 2022, against 580 to 617 million estimated by the consensus established by Bloomberg.

Bouygues loses 1.5%. The construction and telecommunications group has confirmed its objectives for 2021 thanks to a clear improvement in its turnover and results after suffering the impact of the pandemic last year. Jefferies points out that TF1 and the construction division exceeded expectations, while Colas disappointed. The broker indicates that he expects clarification from management on the group’s sensitivity to sustainable inflation from the conference call, as well as the maintenance of margin objectives in the various divisions presented in the second quarter results.

GTT 7.5% advance. Kepler Cheuvreux went from “conserving” to “buying” on the title of the specialist in the transport and storage of liquefied natural gas.

OVHcloud takes 3.4%. The paperless services specialist reported a 5% increase in revenues for its 2021 fiscal year ended August 31. The group indicates that it expects revenue growth in the upper half of the 10% to 15% range for its 2022 fiscal year. It also anticipates an adjusted EBITDA margin of around 40% for its next fiscal year, compared to 39.5% for the fiscal year ended August 31, 2021.



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