(News Bulletin 247) – The Paris Stock Exchange ended sharply lower this Tuesday evening, disappointed by the absence of announcements of new recovery measures in China. The CAC 40 lost 0.72%, weighed down by a luxury sector that is very sensitive to the Chinese economy.
Back in time for the Paris Stock Exchange. The CAC 40 closed down 0.72% at 7,521.32 points this Tuesday, weighed down by the luxury compartment and by spirits groups.
The biggest drop in the Parisian index, Kering lost 4.45%, LVMH for its part lost 3.6% when Hermès limited its decline by 0.6%. Luxury groups were 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 and Pernod Ricard dropped 6.4% and 4.2% respectively. The two spirits groups were 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.
Renault regains height
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, prices started to fall again, undermined by renewed concerns about Chinese demand.
The December contract on Brent from the North Sea lost 4.5% to 77.33 dollars per barrel while that of November on WTI listed in New York also lost 4.5% to 73.64 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 gained 3%. 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 returned 4.1%. 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 is stable against the dollar at 1.0971 dollars.
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