(News Bulletin 247) – The Parisian index fell quite significantly at mid-session, weighed down by the fall in its largest capitalization.

The Paris Stock Exchange does not have enough resilience to resist the fall in luxury values ​​this Wednesday. The CAC 40 thus fell by 0.52% to 7125.09 points at mid-session.

The market may suffer from profit-taking, after the increase of more than 2% on Tuesday, which was fueled by the easing of sovereign bond rates.

“‘Of course, the tragic events in the Middle East have favored the fall in rates because the increase in geopolitical uncertainties and oil risks justifies a search for reserve assets like public bonds. But this is not the main factor in our opinion”, explains Xavier Chapard of LBPAM.

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Accor resists the bad trend

“This appeasement comes from the change in discourse from central bankers since this weekend, who have become significantly more cautious following the sharp rise in long-term rates over the past two months. Thus, several members of the Fed (American Federal Reserve, Editor’s note) indicated that the Fed does not need to raise rates as much as if financial conditions had not tightened through the market and recalled that the Fed announced a more cautious stance in September. he.

But the main pressure exerted on the Paris Stock Exchange obviously comes from the decline in luxury values.

LVMH delivered disappointing third-quarter sales on Tuesday evening, with like-for-like sales growth of 9% when analysts were expecting 11%. The group is suffering from a normalization of demand for luxury, which was very clear in Europe, with the company’s activity increasing by 7% over the quarter compared to growth of 17% over the previous quarter.

As a result, LVMH lost 6.3% on the Paris Stock Exchange, which also weighed on Kering (-2%) and Hermès (-1.4%). In Zurich, Richemont, owner of Cartier, gave up 3.6%.

On other values, Maisons du Monde (-6.8%) fell once again, bringing its plunge over the whole of 2023 to 52%. TP ICAP Midcap believes that it is still too early to reposition itself on the stock.

Accor resisted the bad trend, gaining 1.7% after announcing the launch of a 400 million euro share buyback program made possible by the improvement of its financial balance sheet.

On other markets, the euro is stable against the dollar at 1.0603 dollars. Oil is sluggish. The December contract on North Sea Brent fell 0.2% to 87.46 dollars per barrel, while that of November on WTI listed in New York lost 0.4% to 85.66 dollars per barrel.