Paris (awp/afp) – The Paris Stock Exchange fell sharply on Friday, offset by luxury heavyweights suffering from worries about the weakness of the Chinese economy and the protectionism promised by Donald Trump.
The flagship CAC 40 index lost 1.17%, to 7,338.67 points, a drop of 86.93 points at the end. On Thursday, it finished up 0.76%, at 7,425.60 points.
It fell on Friday to its lowest level since August 14, after falling, over the whole week, by 0.95%.
The Parisian market has been dragged down in particular by the sharp decline in luxury values, which is largely responsible for its prices. Kering fell 7.75%, LVMH lost 3.33% and Hermès 4.13%.
These suffered from investor concerns about weak economic growth in China, one of their main markets, where they have been struggling for several months.
New recovery measures announced on Friday by Beijing – an increase of 780 billion euros in the debt ceiling of local authorities – were disappointing. And Swiss luxury sector giant Richemont posted a disappointing second quarter on Friday, weighed down by weak Chinese demand.
“Investors are getting impatient and are waiting for serious budget stimulus measures from the authorities” in China, Eymane Cherfa, an analyst at Myria AM, explained to AFP.
In addition to this there is a fear that there will be more trade tensions with the election of Donald Trump as President of the United States.
“There is no doubt that American policy will put pressure on European countries and China,” said Vincent Guenzi, investment director at Cholet Dupont Oudart.
The Republican specifically wants to increase import taxes between 10 and 20% for products coming into the United States, and up to 60% for those coming from China.
“We are entering a non-cooperative game with customs duties and a balance of power that will no longer be the same as the democrats,” said Mr. Cherfa.
Another topic of concern in Europe: the political crisis at the head of the government in Germany, the largest economy on the continent.
Chancellor Olaf Scholz is under increasing pressure from the opposition and business circles to leave power quickly, after his weak coalition broke up this week.
According to a poll published on Friday, two-thirds of Germans are aiming for new elections without delay, reinforcing the opposition’s increasing calls in this regard.
“This situation creates a vacuum in European politics, as Donald Trump prepares to take power over the Atlantic,” said Sebastian Paris Horvitz and Xavier Chapard, experts from LBP AM.
JCDecaux decrypts
Advertising display giant JCDecaux fell 12.01%, to 14.80 euros, after recording sales growth of more than 10% in the third quarter. But for the fourth quarter, the group predicts “mid single-digit” growth, due to “macroeconomic uncertainties such as the ongoing budget debates in France and the United Kingdom”.
fcz/max/er
2024-11-08 23:57:00
#Paris #weighed #luxury
