(News Bulletin 247) – After a difficult session the day before, the Parisian index recovered this Wednesday, driven by LVMH, its first market capitalization.

The Paris Stock Exchange suffered on Tuesday, with the CAC 40 recording its worst session since the beginning of January, with a drop of 1.4%.

The Parisian index, however, regained strength this Wednesday, and advanced by 1.36% at mid-session, returning above 8,000 points, to 8,040.39 points.

The rise in bond rates, which has gripped the market in recent days, appears to be stabilizing. The yield on the 10-year US debt security stands at 4.644% compared to 4.673% on Tuesday evening.

“The market remains on the defensive this week, still impacted by lower expectations of rate cuts from the Fed and by the risks of escalating tensions between Israel and Iran. Thus, oil remains above 90 dollars per barrel, interest rates are at their highest since November on both sides of the Atlantic, just like the dollar”, summarize the LBPAM economists.

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LVMH shines brightly

The appetite for risk is nevertheless returning with the pause on bond tensions. And, above all, the CAC 40 is driven by its great locomotive: luxury.

The largest capitalization on the Paris Stock Exchange, LVMH rose 5%, marking the largest increase in the Parisian index, after the publication of its activity in the first quarter. If the group’s growth slows, the publication contains reassuring elements, both regarding the resistance of the American market and sales of Chinese customers.

In the wake of LVMH, Hermès, another good student of luxury, gained 3%.

Derichebourg, for its part, lost 5% after issuing a profit warning, caused by the stronger than expected impact of the cyberattack suffered at the end of 2023.

On other markets, the euro gained 0.2% against the dollar to 1.0645 dollars. Oil is losing ground. The June contract on North Sea Brent lost 0.9% to $89.20 per barrel while the May contract on WTI listed in New York lost 0.9% to $94.60 per barrel.