(News Bulletin 247) – The Paris Stock Exchange extends its rebound after the announcement of a recovery in retail sales in China while the ECB opens the door to the end of rate increases. Luxury is in great shape in the wake of the news from China, which greatly helps the rise of the Parisian index which gains 1.5% at mid-session.

The Paris Stock Exchange ends the week on a high note. The CAC 40 rebounded by 1.52%, beyond 7400 points to 7419.88 points this Friday, driven by encouraging Chinese indicators and the hope that the European Central Bank will put an end to the increase in rates.

A final point which had also allowed the Parisian index to gain 1.2% at the close on Thursday. For now, the CAC 40 is up more than 2.4% over the week.

The appetite for risk is therefore making a comeback as the ECB implicitly indicated on Thursday that further increases are unlikely after having (again) raised its rates to a historic level.

“Based on its current assessment, the Governing Council considers that the ECB’s key interest rates have reached levels which, if maintained for a sufficiently long period, will contribute significantly to the return of inflation to the level as soon as possible. of the objective”, explained the central bank in its press release.

“The publications of recent days have allowed stocks exposed to China, including luxury goods, to stabilize and rebound a little, allowing for the moment the CAC40 not to break the bottom of the consolidation zone in which it has been evolving for months, an index largely helped yesterday by the ECB press release and Christine Lagarde’s speech which gave substance to the hypothesis that the peak in rates had been reached”, notes Alexandre Baradez, head of analysis markets at IG France.

Luxury sparkles

After many gloomy sessions, luxury is regaining color on the stock market this Friday driven by a rebound in retail sales in China in August. LVMH rose 3.6%, Kering rose 2.8%, which constituted the two biggest increases in the CAC 40, and Hermès rose 2%.

Maisons du Monde lost 2.2% while the Financial Markets Authority requested 320,000 euros in fines against two former managers of the brand specializing in home furnishings.

On the foreign exchange market, the euro gained 0.2% to 1.0663 dollars the day after its decline in reaction to the ECB’s latest announcements. Oil contracts are progressing. The November North Sea Brent contract gained 0.25% to $93.93 per barrel while the October contract for WTI listed in New York advanced 0.3% to $90.45 per barrel.