(News Bulletin 247) – The Paris Stock Exchange ends the week in contact with 7,800 points with an increase of 0.64% on Friday evening, which allows it to print its best weekly rate of the year (+3.9%) .

The Paris Stock Exchange closes this week in style. The CAC 40 increased by 0.64% to finish at the gates of 7,800 points at 7,791.79 points, this Friday, the day after its best session of the year (+2.33%).

Over the week as a whole, the Parisian index rose 3.89%, achieving its best weekly performance of the year.

The market welcomes the slowdown in inflation in the United States, highlighted by the PCE index, the preferred gauge of the American Federal Reserve (Fed). The consumer price index in the United States slowed to 2.2% year-on-year in August, compared to 2.3% expected by consensus and 2.5% the previous month. These signs of calm on prices are all the more appreciated as they maintain the hope of further rate cuts in the United States.

The appetite for risk has especially returned to the market in recent days, thanks to China’s desire to strengthen its economic support measures in order to meet its growth objective of 5% in 2024.

“In China, the Politburo held an economic meeting for the first time in September yesterday, reinforcing the impression that the authorities have finally decided to do more to stabilize the economy, which slowed further this summer,” underlines Xavier Chapard, LBPAM strategist.

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Luxury and the automotive sector at the party

On the value side, luxury rode the momentum driven by China. Kering gained 6.3%, LVMH 3.7% and Hermès 0.7%. In addition to China, LVMH took an indirect stake in the down jacket specialist Moncler, which may have revived speculation about consolidation in the sector.

Cyclical stocks such as STMicroelectronics (+6%) or Stellantis (+4.1%) also stood out well.

Excluding the CAC 40, Forvia rebounded by 11.1% after issuing a profit warning which, however, probably turned out to be less significant than feared by the market. In its wake, OPMobility (the former Plastic Omnium) grew by 8%.

But it was Trigano (+11.4%) which took the lead in the SBF 120 this Friday evening after publishing a sharp increase in annual turnover.

On other markets, the euro lost 0.17% against the dollar, to 1.1158 dollars. Oil is trying to regain some color after its fall the day before. The contract on Brent from the North Sea climbs 0.3 to 71.28 dollars per barrel while that of the same maturity on WTI listed in New York appreciates by 0.35% to 67.91 dollars.