(News Bulletin 247) – The Parisian index is moving slightly higher this Monday, October 7, 2024 while luxury goods are progressing slightly pending potential new recovery measures in China.

The Paris Stock Exchange begins the week on a hesitant note. The CAC 40 advanced 0.15% to 7,552.62 points at mid-session this Monday.

The market continues to keep an eye on the situation in the Middle East and digest the US employment data released on Friday. The report showed robust job creation in the United States in September, well above the figure expected by economists.

“US employment was much stronger than expected in September, implying that the Fed will almost certainly reduce the size of its rate cuts from 50 basis points (0.5 percentage points) in September to 25 basic points during its next meetings, as we anticipated”, writes Xavier Chapard of LBPAM.

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Well-oriented luxury

The indices are a little buoyed this Monday by luxury, Kering gaining 3%, LVMH 1.3% while Hermès is stable.

According to information reported by Reuters, the agency in charge of economic planning in China will hold a press conference on Tuesday on “steps” necessary for the implementation of policies intended to promote growth.

A meeting which can lead the market to speculate on new recovery measures in China, a critical market for luxury companies.

Outside of luxury, tech fell a little, STMicroelectronics dropping 1.9% and Capgemini 1.8%.

Excluding CAC 40, Rubis gained 4.9% after announcing a share buyback program which will cover a maximum of 1 million shares and a ceiling price of 50 euros per share.

On other markets, the euro lost 0.1% against the dollar to 1.0966 dollars. Oil is still climbing, while geopolitical tensions in the Middle East are barely easing. The December contract on North Sea Brent advanced 2.2% to $79.80 per barrel while the November contract on WTI listed in New York gained 2.7% to $76.35 per barrel.