(News Bulletin 247) – The Paris Stock Exchange contained its decline at the close, helped by the continued fall in government bond yields. The CAC 40 ended down 0.4%, despite the fall of LVMH which strongly disappointed in its growth this summer.

The Paris Stock Exchange is delaying the day after its increase of more than 2%, its best performance since July, which was fueled by the easing of sovereign bond rates.

And it is once again the easing of tensions on the bond market which acted as shock absorbers this Wednesday in the face of the fall in luxury values, the flagship sector of the Parisian market.

Down 1% at the height of the day, the CAC 40 managed to contain its decline to 0.4% at 7,131.21 points at the close on Wednesday evening. The flagship index even took advantage of the opening of the American markets to attempt a brief foray into positive territory.

However, investors have taken note of producer prices in the United States for the month of September. They increased by 0.5% last month and by 2.2% over one year, after an increase of 0.7% in August (+1.6% over one year). But this slowdown is weaker than expected by the consensus which predicted a monthly increase of 0.3% and 1.6% in annual variation.

This slight tension on prices does not call into question the easing at work on the bond market. The yield on the 10-year US bond is down to 4.59% after falling to 4.653% on Tuesday. The yield on 10-year German debt is at 2.73% compared to 2.78% on Tuesday when its French equivalent also fell to 3.282% compared to 3.35% the day before.

On Thursday, the markets will focus on consumer prices, figures will feed the thinking of the American Federal Reserve regarding the future direction it will give to its interest rates.

Maisons du Monde in sharp decline

The start of the major company publication season is difficult, marred by the LVMH disappointment. The luxury giant 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 6.5% on the Paris Stock Exchange, which weighed to a lesser extent on Hermès (-1.5%) and Kering (-1.4%).

On other stocks, Maisons du Monde lost almost 10% at the close, bringing its plunge over the whole of 2023 to 55%. TP ICAP Midcap believes that it is still too early to reposition itself on the stock.

Another big disappointment was Planisware, which postponed its IPO at the last minute, citing “difficult market conditions”. The price setting was planned for this Wednesday before a first listing on Thursday, which would have made this operation the most important in Paris since OVH in October 2021.

Euroapi rebounded by 11% the day after its spectacular plunge of 59%. The French champion of pharmaceutical assets had strongly disappointed the markets after having revised downwards its outlook for 2023 and suspending those for the medium term.

Accor resisted the decline, gaining 2% 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 gained 0.1% against the dollar to 1.0617 dollars. Oil shows a heavy decline. The December contract on North Sea Brent fell 1.9% to 85.97 dollars per barrel, while that of November on WTI listed in New York plunged 2.3% to 83.96 dollars per barrel.