(News Bulletin 247) – The Paris Stock Exchange ended sharply higher thanks to half-year results that were (finally) well received. Back at 7,500 points, the CAC 40 also benefited from the publication of the PCE index, which maintains hopes of a future rate cut in the United States in September.

The Paris Stock Exchange ended the week on a very good note. The CAC 40 gained 1.22% this Friday at the close, at 7,517.68 points, supported by results from the stock market heavyweights appreciated by investors, which was not the case in recent days.

Luxury giant Hermès has lived up to its status as a good student of luxury, while the publications of Essilorluxottica, Vinci and Saint-Gobain have also been favoured by investors.

The Paris stock market also found fuel in the United States, with a new decline in inflation in June, at an annual rate. It stood as expected at 2.5% over one year, after 2.6% in May, according to the PCE index, which is the preferred inflation indicator of the American Federal Reserve (Fed).

On the other hand, over a month, prices rose by 0.1%, which is also in line with the consensus expectations, which were counting on a monthly increase of 0.1%. Not enough to dash the markets’ hopes. Today’s publication confirms investors in their scenario of a first rate cut by the Fed in September.

Today’s session therefore allows the CAC 40 to take a breather and, above all, to get out of the technical correction zone. At the close on Thursday evening, the CAC 40 had in fact returned more than 10% compared to its historic high reached in May.

On a weekly basis, the Paris index therefore contained its decline to 0.22%, but has been in negative territory since the start of the year (-0.34%).

Hermès atomizes the competition

Leather goods and saddlery maker Hermès (+3.4%) reported 13.3% growth excluding foreign exchange in the second quarter, above expectations and pulverizing the competition. Bank of America notes that Hermès’ growth compares with, on average, a 1% decline for the luxury sector in the second quarter.

The biggest increase in the index, however, was recorded by EssilorLuxottica (+7.4%), which published solid profitability in the first half of the year and above all confirmed the interest of Meta, which is considering investing in its capital.

Saint-Gobain gained 4.2%, the building materials specialist revealed a record margin in the first half, while Vinci rose 3.45%. The construction and concessions group revealed better-than-expected accounts for its first half and generated more cash.

After collapsing by 10% at the start of the session, Capgemini managed to limit its decline to 2.45%. The IT services group disappointed the market after lowering its revenue outlook for 2024.

Outside the CAC 40, Nexity jumped 13.8% after its half-yearly accounts and the announcement of a plan to sell a subsidiary intended to accelerate the real estate developer’s debt reduction.

FDJ grew by 8.2%. The gambling specialist delivered growth deemed solid in the first half, thanks in particular to sports betting which benefited from results that defied predictions, which benefited turnover.

Bureau Veritas (+8%) has once again enchanted the market with its half-yearly accounts. With a 25% increase since the beginning of the year and a capitalization of 13 billion euros, the group is knocking more and more strongly on the door of the CAC 40, of which it is not (yet) a part.

In contrast, Eramet plunged 11.7% after revealing its first half-year loss since 2020.

In other markets, the euro gained 0.1% against the dollar to $1.0860. Oil prices fell sharply due to concerns over Chinese demand. The September contract for North Sea Brent fell 1.9% to $80.84 a barrel, while the September contract for WTI listed in New York lost 1.8% to $76.86 a barrel.