(News Bulletin 247) – The Paris Stock Exchange is starting the week in a bad mood, weighed down by the decline in luxury stocks. The CAC 40 fell by more than 1% at the close, to return below 7300 points.

To start this week, the Paris Stock Exchange is deprived of its precious support. Luxury stocks are indeed struggling, weighed down by disappointing Chinese statistics and a publication below expectations from the Swiss Richemont.

And given their weight in the Paris star index, the decline of its three largest capitalizations (namely LVMH (-3.7%), L’Oréal (-1.8%) and Hermès (-4.2 %) and Kering (-2%)) did not go unnoticed. The CAC 40 thus fell by 1.12% to 7291.66 points at the close on Monday, after having achieved its best weekly performance since the end of March (+3.7%).

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Disappointing Chinese data

In addition to Richemont’s disappointment, a macroeconomic factor has shaken the luxury sector on the Paris Stock Exchange. Several statistics in China have not been entirely satisfactory, in particular the gross domestic product (GDP) which only increased by 6.4% in the second quarter on an annual basis, far from the 7.4% hoped for by economists. , despite a favorable basis for comparison. However, the luxury sector is very sensitive to changes in the economic situation of the Middle Kingdom.

“The data is not improving and the rebound effect due to the reopening of the country at the end of last year, does not seem to have lasted very long. After the declines observed in the manufacturing industry and foreign trade, the GDP data released this morning show less growth than expected,” said Vincent Boy, market analyst at IG France.

“Beyond China, investors will be very attentive to the second quarter earnings season, in order to be able to justify the meteoric acceleration of the financial markets since the beginning of the year”, he continues. The financial sector has already opened the ball for business publications in the United States on Friday, with a rather favorable reception.

In addition to corporate results, retail sales on Tuesday in the United States, the final estimate of inflation in the euro zone on Wednesday, as well as inflation figures in Japan on Friday will be on the agenda this week.

End of series for Osmosun

In this context, the vast majority of the CAC 40 is moving downwards, even if stocks have managed to extricate themselves from this heavy trend such as Carrefour (+0.6%), Sanofi or Thales (+0.5%).

On the smallest values, Osmosun was the victim of sustained profit taking (-14.8%). The title has chained the beautiful increases since its IPO a week ago, still posting an increase of more than 50% compared to its IPO price.

On other markets, the euro continues to rise against the dollar, taking 0.1% to 1.1236 dollars. Oil prices are weighed down by poor Chinese indicators. The September contract on North Sea Brent fell 1.1% to $79 a barrel, while the August contract on New York-listed WTI fell 1% to $74.56 a barrel.