(News Bulletin 247) – Disappointed by the absence of announcements of new recovery measures in China, investors are punishing luxury sector securities. The CAC 40 fell quite significantly mid-session.
The Paris Stock Exchange is back in the red this Tuesday. The CAC 40 dropped 0.8% at midday, to 7,516.83 points, weighed down by the luxury compartment and by alcohol producers.
Kering lost 4.9%, LVMH lost 3.6% and Hermès fell 1.5%. Luxury groups are penalized by the absence of announcements of new measures from China, during a press conference held by the Chinese National Development and Reform Commission. This while the market had speculated the day before on potential new devices.
Rémy Cointreau Pernod Ricard lost 8% and 3.7% respectively. The two spirits groups are weighed down by China’s decision to introduce security deposits on imports of European spirits, such as cognac. Which constitutes an important prelude before the implementation of customs surcharges on these products.
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Renault is getting back on track
The market also continues to monitor the situation in the Middle East, while tensions in the region propelled the price of Brent above $80 per barrel on Monday. This Tuesday, the December contract on Brent from the North Sea fell, losing 1.9% to 79.41 dollars per barrel while that of November on WTI listed in New York dropped 2% to 75 dollars per barrel.
Investors will especially wait for the publication, on Thursday, of American inflation for the month of September.
In terms of values excluding luxury and spirits, Renault regains almost 4%. According to Bernstein, the company’s management made reassuring remarks during a conference call organized ahead of the publication of its third quarter sales figures on October 24.
Ubisoft drops 4%. UBS went from “sell” to “neutral” on the value. If the Swiss bank recognizes that a public purchase offer, if it materializes, could carry the action, it adds to remain “cautious” on the fundamentals of the company.
On foreign exchange, the euro gained 0.07% against the dollar to 1.0984 dollars.
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