(News Bulletin 247) – The Paris index rebounded by more than 1% on Tuesday evening thanks to the announcement of stimulus measures from China. This benefited luxury stocks, which supported the CAC 40’s rebound above 7,600 points.

On the wire, the crossing of the 7,600 point level was validated this Tuesday evening. The CAC 40, in fact, rebounded by 1.28% to end its race at 7,604.01 points.

The Paris market reacted positively to the stimulus measures announced by the People’s Bank of China, the country’s central bank, on Tuesday.

“The next wave of easing will likely come from fiscal and housing policy, which could change growth expectations and market sentiment, depending on the magnitude and effectiveness of the announcements,” economists at Allianz Global Investors said.

The euphoria generated by the announcement of these stimulus measures overshadows the publication of lackluster statistics on both sides of the Atlantic. In the afternoon, operators learned of an unexpected deterioration in consumer morale in September in the United States. The index measured by the Conference Board fell to 98.7 points in September, compared to 103.8 points for the consensus and after 105.6 points the previous month.

Earlier, investors had taken note of a disappointing business climate index in Germany. The Ifo index fell to 85.4 in September from 86.6 in August.

Luxury sparkles

On the value side, luxury is celebrating, propelled by the support measures of China, a crucial country for companies in the sector. Hermès recovered 3.85% while Kering progressed by 3.2% as did LVMH.

But the biggest increases of the day are to be found in cyclical stocks such as the steelmaker ArcelorMittal (+4.8%) or the mining group Eramet which gained 4.7%.

Automotive equipment manufacturers Forvia (+2.7%) and Valeo (+1.9%) also benefited from the momentum generated by this Chinese recovery plan.

Legrand, on the other hand, is not taking part in the party (-0.2%), the ambitions announced by the group for 2030 having received a rather lukewarm reception.

On the small and mid-cap side, independent video game publisher and studio Don’tnod plunged 18.6% after announcing that its half-yearly accounts were weighed down by the commercial failures of the games “Jusant” and “Banishers: Ghosts of New Eden.”

On other markets, the euro gained 0.3% against the dollar to $1.1148. Oil rose sharply, reassured by China’s support measures. Fears over Chinese demand had weighed on the price of black gold in recent months.

The November contract on North Sea Brent rose 1.5% to $74.30 per barrel, as did the same-dated contract on WTI listed in New York at $71.4 per barrel.