(News Bulletin 247) – The Paris Stock Exchange is in decline after three sessions of progress. The CAC 40 closed down 0.6% below 7,200 points, undermined by its luxury sector itself shaken by the warning from the British Burberry.

End of series. The CAC 40 recorded its first decline of the week, and therefore fell 0.57% below 7,200 points to 7,168.40 points this Thursday evening at the lowest of the day.

The Parisian index is taking a break after gaining 2.3% over the last three sessions, in reaction to macroeconomic data suggesting a reduction in central bank rates next year. A forced rest for the CAC 40 which was slowed down in its momentum by the drop in the values ​​of its flagship compartment, namely luxury, after the warning from the British Burberry.

On Wall Street, investors are also digesting the latest statistics published this Thursday afternoon, including the traditional weekly unemployment registrations. They increased by 13,000 last week, to stand at 231,000 requests, the highest since August.

Enough to further fuel the prospect of a pause in rate increases by the Federal Reserve, after the publication of two statistics showing a slowdown in consumer and producer prices, Tuesday and Wednesday.

Quoted by Reuters, Rabobank strategists estimate that “in light of the recent decline in inflation and the drop of almost 50 basis points (0.50 percentage point, Editor’s note) in US 10-year yields since their peak in mid-October, it will be interesting to know whether they think the positive market reaction is justified or risks undermining the Fed’s inflation target.”

Indeed, the yield on ten-year American debt is falling again to 4.45% the day after a small incursion to 4.50%.

Burberry gets a jacket, luxury is disillusioned

On the business side, fortunes are mixed after a new batch of corporate results. On Wall Street, Walmart fell by 6%, with management’s cautious comments on the direction of consumption in the United States taking precedence over the increase in its annual forecasts.

In Europe, luxury is struggling in the wake of the fall of Burberry shares on the London Stock Exchange (-10.7%). The British company warned that the “slowdown in global luxury demand” could weigh on its 2023-2024 annual objectives. Kering lost 2.7%, LVMH returned 1.7% while Hermès shares limited their decline to 0.4%.

Alstom recovered 4.4% the day after a decline of 15% after the announcement of an action plan to restore its finances.

Excluding the flagship index, Vallourec jumped 5.2% after raising its gross operating profit forecast.

Elior jumped 9.7%, supported by TP ICAP Midcap which this morning raised its purchase recommendation on the collective catering group.

On the foreign exchange market, the euro is stable against the dollar at 1.0851 dollars. On the oil side, on the other hand, the prices of the two global benchmarks fell by more than 4%, after an increase in American stocks and fears of a slowdown in the economy in China and the United States. A barrel of Brent from the North Sea, for delivery in January, therefore dropped 4.1%, back below 80 dollars to 77.83 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, plunged 4.4% to $73.28.