(News Bulletin 247) – The CAC 40 is rising sharply this Thursday, thanks to hopes of new stimulus measures from China which will boost luxury. Ubisoft is plummeting.

This Thursday’s session is incredibly lively. At midday, the CAC 40 advanced 1.4%, returning to 7,670.47 points.

The Paris market is supported by press information from China. China’s official Xinhua news agency reported that the Chinese Politburo meeting on Thursday decided that new measures were required to support the economy and achieve the 5% growth target in 2024. The urgency to revive the real estate sector , which has been in decline for three years, was also highlighted.

Some media also report measures to reduce youth unemployment, or even, like Bloomberg, capital injections into state banks.

Enough to encourage the market to bet on new stimulus measures in the coming days. This would be in addition to a first package unveiled by the People’s Bank of China on Tuesday.

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Luxury (again) at the party

Quite logically, this information fuels the appetite for risk and boosts sectors that depend on China, such as luxury. LVMH takes 6.6%, Hermès gains 6.4% and Kering advances 6.1%. The spirits group Pernod Ricard gained 4.7%.

Investors will be watching the release this afternoon of the second estimate of US gross domestic product (GDP) for the second quarter as well as the intervention of the President of the Federal Reserve (Fed), Jerome Powell. Other members of the American central bank will also speak this afternoon.

On values, apart from luxury, Teleperformance (-5.5%) shows the biggest drop in the CAC 40, penalized by a cross-reading of the market following the poor results of its American comparable Concentrix.

Ubisoft collapses by 20% after postponing the release of its game “Assassin’s Creed Shadows” by three months and lowering its forecasts for the 2024-2025 financial year.

Totalenergies fell by 3% in the wake of the drop in oil prices. Black gold is, in fact, losing ground, following information from the Financial Times. According to the British daily, Saudi Arabia has decided to abandon the defense of its unofficial objective of a barrel price of 100 dollars. Riyadh should thus increase its production and regain market share.

The November contract on North Sea Brent lost 1.3% to $71.95 per barrel while that of the same maturity on WTI listed in New York lost 1.4% to $68.72 per barrel.

Sodexo lost 7.4% while Bloomberg reported that the group would eye its American competitor Aramark.