(News Bulletin 247) – The flagship index of the Paris Stock Exchange is falling slightly at mid-session this Tuesday. Inflation in the euro zone has fallen to a three and a half year low.

The Paris Stock Exchange fails to take off again. Following a 2% drop, the CAC 40 remained on the ropes and dropped 0.17% mid-session on Tuesday, to 7,622.89 points.

The Paris market is struggling to regain momentum after being largely driven last week by stimulus measures (and speculation about new measures) from Chinese authorities to revitalize growth and support a flagging Chinese real estate market.

Investors are factoring in the decline in inflation in the euro zone. Prices rose 1.8% in September, falling to a three-and-a-half year low. Nothing very surprising, however, given the figures already published in Germany and France.

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Luxury is declining

“The drop in overall euro zone inflation below 2% in September should be enough to persuade the European Central Bank (ECB) to cut rates in October, even if services inflation remains high,” judges Capital. Economics.

The market is monitoring the dockers’ strike in the United States, which began on Tuesday. Significant impacts are feared on the American economy. But Capital Economics judges that these walkouts are unlikely to cause major economic disruption.

Investors will also keep an eye on the general policy speech by French Prime Minister Michel Barnier, which will be delivered at 3 p.m.

On the value side, luxury is falling back a little. LVMH lost 1.5%, Kering gave up 1.46% and Hermès lost 1%. The sector may suffer profit taking after being catapulted last week by announcements from China. In a note published this Tuesday, HSBC judges that the recovery in consumption in the country “will be long”.

Stellantis takes 0.6%, not recovering from its fall the day before (-14.7%) following a heavy profit warning. The manufacturer must now rebuild credibility damaged by recent disappointments.

Excluding the CAC 40, Lacroix lost 4.5% after publishing falling half-year results.

On other markets, the euro lost 0.4% against the dollar to 1.1090 dollars. Oil is falling. The December contract on North Sea Brent fell 0.9% to $71.11 per barrel while the November contract on WTI listed in New York lost 1% to $67.54 per barrel.