(News Bulletin 247) – The Parisian index ended with a small increase this Friday, allowing it to limit its decline over the week and the month.

The Paris Stock Exchange ended the week better than it started it. The CAC 40 thus ended Friday’s session with an increase of 0.26% to 7135.06 points. Over the week the balance sheet remains negative with a decline of 0.69%.

As for the monthly variation, the CAC 40 had a very difficult month of September, with a decline of 2.48%, fueled by restrictive speeches from central banks and the rise in oil prices. Finally over the quarter, the main barometer of the Paris Stock Exchange showed a fall of 3.58%.

Coming back to this Friday’s session, the day was quite lively with several statistics to dissect.

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Inflation is falling

Inflation in the euro zone fell to 4.3% year-on-year in September compared to 5.2% in August. The trend is therefore towards moderation in price increases, confirming the latest figures published for Germany and France. Inflation in France remained at 4.9% year-on-year in September, while across the Rhine it stood at 4.5% year-on-year still for the current month.

“The September inflation release suggests that the underlying slowdown may be occurring at a faster pace than many market participants or even the European Central Bank forecast” , considers Marc de Muizon, economist at Deutsche Bank.

In the United States, the PCE index, the preferred gauge of the American Federal Reserve (Fed) to measure inflation, increased slightly over one year to 3.5% in August, compared to 3.4% over the previous month. But the “core” index, excluding energy and food prices, fell to 3.9% against 4.3% previously, and a figure of 3.9% expected by economists polled by Reuters. “Core consumer price inflation is slowing rapidly despite the resilience of consumption,” summarizes Capital Economics.

Good session for luxury

Bond yields are finally giving up some ground. The rate on the 10-year US Treasury bill is currently moving at 4.535% compared to 4.578% on Thursday evening, and it had even exceeded 4.6% during the week. The German Bund rate stands at 2.831% compared to 2.931% on Thursday, a day during which it flirted with 3%.

On the value side, tech and luxury had a good session, with Dassault Systèmes gaining 1.9% and Worldline 1.02% while LVMH advanced 1.47% and L’Oréal 0.74%. . Falling bond yields supported these growth stocks.

Additionally, for luxury, Bank of America strategists raised their view on the sector to “outperform” from “previously market performance.”

Excluding the flagship index, Trigano posted a good performance (+8.9%), after having indicated that it expected more solid profitability in 2022/2023.

On the other hand, oil and oil-related stocks have suffered from the drop in black gold prices. Schlumberger lost 4%, TotalEnergies 2.06% and Vallourec 1.3%.

Oil contracts are indeed correcting. The North Sea Brent contract for delivery in December lost 1% to $92.16 per barrel and the November contract for WTI listed in New York lost 1.2% to $90.61 per barrel.

On foreign exchange, the euro gained 0.1% against the dollar, to 1.0581 dollars.