The Paris Stock Exchange closed the week on a positive note with an overly weak rebound (+0.20%) on Friday, weighed down by a downturn in the luxury sector and an environment fraught with inflation-related risks.
The CAC 40 fell into losses at the close after gaining more than 1% during the session, driven by China’s stimulus measures, eventually capping a 0.20% rally. Within a week, it posted a negative balance of 1.22%.
Many market experts expect volatility to remain high soon.
Inflation, a major concern for investors, is forcing central banks to pull back support by raising interest rates when economic conditions deteriorate.
“Compared to the previous week, the week started relatively calm, when the US stock market began to fall again (Wednesday, editor’s note), one of the worst declines in two years, dragging down all other markets. », recall Edmond de Experts at Rotschild AM.
Luxury and Richemont fail
French big three LVMH (-2.09 euros), Hermès (-1.94) and Kering (-0.83%) were hit by the performance of Swiss luxury giant Richemont, which reported a 61% rise in annual net profit but Operating earnings fell short of analysts’ forecasts.
New delay for EDF
The French energy group has announced that the construction of two next-generation nuclear reactors (EPR) at Hinkley Point, England, will be further delayed by at least a year and increase costs by at least £3bn. Still, its shares rose 1.35 percent to 8.41 euros.
Air France-KLM new investor
Air France-KLM shares rose 1.06 percent to 4.30 euros after announcing that U.S. fund Apollo would invest 500 million euros in the capital of the Air France-KLM subsidiary. As a result, the airline group will be able to repay some of the aid provided by the French government.