(News Bulletin 247) – Boosted by the crossing the previous week of its peak in 2000, the CAC 40 is benefiting from an upward aspiration effect. Gleaning an additional 0.45% on Friday, the flagship tricolor index signs another week of clear growth, despite reduced activity with November 11.
Since the main barometer of the Parisian market surpassed an all-time high dating back to September 2000 (it was about time, when we consider that the American S&P 500 is moving three times higher than twenty years ago), the records s ‘continue. Friday, the CAC 40 finished at a new record at the close of 7,091.40 points, an increase of 0.45% over the day (tenth increase in the space of eleven sessions in passing) leading to a gain of 0.72 % over the week. This is also the sixth consecutive weekly increase. Despite concerns about inflation or the resurgence of Covid cases, all pretexts are good to go for new heights …
This weekend, it is once again the luxury sector that has played the locomotives. While a famous firm assures that the luxury industry should erase the effects of the Covid pandemic this year (with regard to the listed leaders of the sector it is already practically acquired given their dynamism over the first nine months), champions LVMH (+ 2.5%), Kering (+ 2.9%) and Hermès (+ 2.6%) took advantage of the momentum given by Richemont, whose price rose by more than 10% in Zurich .
The Swiss group, owner of Cartier, Jaeger-Lecoultre and Dunhill unveiled results for the first half (from April to September) significantly higher than expectations with in particular an operating result close to 2 billion euros – reflecting a profitability for the whole group of the level of a Hermès or Louis Vuitton, the most profitable division of LVMH.
Richemont also announced that he was negotiating the sale to Farfetch of a stake in Yoox-Net-à-Porter, showing that he could finally develop this platform in which he had invested $ 2.8 billion in 2018.
The euro continues to decline
In addition to luxury, investors again favor Renault (which recovered 4.4% after its stall on Thursday). For ArcelorMittal, the pendulum goes the other way, a decline of 2.8% while the action of the steel group was at the top of the charts the day before at + 4.1%.
At 1.1448 dollars (unchanged) the euro remained weak against the greenback but also against the Asian currencies. A sign that the prospect of an increase in the yield differential between Europe and the United States is not the only pressure factor for the single currency.
On the oil side, Brent retroceded 0.56% to 82.41 dollars (-0.51% to 81.17 dollars for the WTI), on track for a third consecutive week of correction after the peak in crude prices since 2014 reached in the last month.
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