(News Bulletin 247) – The Parisian index is up more than 2% at mid-session this Friday, supported by the jump in LVMH shares. The closing record, or even the session record, risks being broken. Unless the PCE index in the United States comes to play spoilsport.

The CAC 40 is in the process of signing its best session in months. The Parisian index rose 2.1% to 7,623.76 points at mid-session this Friday.

If the CAC 40 session record is still a stone’s throw away (7653.99 points), the one at market close is clearly in sight (7596.61 points). For now, over the week as a whole, the index is up more than 3.4%.

The market continues to digest the announcements from the European Central Bank (ECB) which has kept its key rates unchanged, while its president, Christine Lagarde, explained that it was still too early to discuss rate cuts.

“We still think the ECB could start cutting rates in April, after it revised its inflation and growth projections downward in March. That said, the risk is that it waits until June to start lowering its rates, particularly if wages do not start to slow significantly from the start of 2024 or if maritime tensions in the Red Sea create a new significant supply shock”, judges Xavier Chapard of LBPAM.

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LVMH carries several values

The market is also awaiting the publication at 2:30 p.m. in the United States of the PCE index, the preferred gauge of the American Federal Reserve (Fed) to measure inflation. This indicator is therefore still closely monitored by the market and could potentially modify the trend.

The enthusiasm of the Paris Stock Exchange is mainly due to its largest capitalization: the luxury group LVMH. The stock gained 11.3% and topped the CAC 40, thanks to sales above expectations in the fourth quarter, particularly in the United States. LVMH leads in its wake the other luxury groups Kering (+4.7%) and Hermès (+3.6%). But also the spirits companies Pernod Ricard + (6.5%) and Rémy Cointreau (+14.6%) thanks to positive comments on cognac.

Moreover, Rémy Cointreau, for its part, published its sales from October to December, which, certainly, remain at half mast, but seem to show investors that they have reached the bottom of the pool.

JCDecaux takes 5.9% supported by activity in the fourth quarter deemed “very dynamic” by Oddo BHF.

On other markets, the euro gained 0.3% against the dollar to 1.0876 dollars. Oil is falling a little. The March contract on North Sea Brent fell 0.6% to 81.46 dollars per barrel while that of the same maturity on WTI listed in New York lost 0.8% to 76.74 dollars per barrel.