(News Bulletin 247) – The Paris index ended the session down 1%. Luxury weighed on the trend.

The CAC 40 has suffered a second significant decline. The flagship index of the Paris Stock Exchange fell 0.98% to 7,500.97 points, after having already fallen 0.9% the day before.

The green opening on Wall Street allowed the market to briefly slow its decline. But around the European close, the American indices were slightly back in the red. The S&P 500 lost 0.01% and the Nasdaq Composite 0.05%.

The American indices are therefore stabilizing after their severe correction the day before, when the Nasdaq fell by more than 3.2%.

The ISM manufacturing index for August in the United States disappointed investors and triggered a movement of risk aversion. Fears about a loss of momentum in the American economy have resurfaced with renewed vigor.

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Luxury in the hard

The “disappointing ISM manufacturing index confirms that the industrial cycle is degraded, even in the United States where demand is nevertheless solid, which is not encouraging for the dynamism of growth”, judges Xavier Chapard of LBPAM.

On Wednesday, markets took note of the decline in job openings in the United States in July. Job openings rose to 7.67 million, compared to 7.91 million in June, according to the Jolts report. The consensus of economists surveyed by the Wall Street Journal was 8.1 million. This statistic gives further credence to the hypothesis of a rate cut by the American Federal Reserve (Fed) in two weeks.

Atlanta Fed President Raphael Bostic said Wednesday that the central bank’s two policy goals – price stability and employment – are now roughly equal in importance, Bloomberg reported.

Although he added that it was not yet possible to judge that victory against inflation had been achieved.

On the value side, luxury, a sector dependent on the economic situation, suffered. LVMH lost 4.2%, Hermès lost 3.8% and Kering dropped 2.2%.

The CAC 40, on the other hand, was able to count on defensive stocks, such as Sanofi (+1.5%), Danone (+1.2%) and Orange (+1%).

At the smallest cap level, Aelis Farma fell 52% after disappointing clinical results for its drug candidate to combat cannabis addiction.

On other markets, the euro gained 0.35% against the euro to 1.1083 dollars. Oil fell again. The November contract on North Sea Brent fell 0.6% to 74.34 dollars a barrel while the October contract on WTI listed in New York fell 0.4% to 70.08 dollars a barrel.