(News Bulletin 247) – The flagship index of the Paris market is moving quite clearly in the red this Wednesday, penalized by the decline in LVMH and other luxury groups.

The start of the results season has now been given on the Paris Stock Exchange. This start turns out to be complicated and the CAC 40 drops 0.56% to 7,479.77 points this Wednesday at mid-session.

The first resident of the Parisian index to submit its copy, LVMH disappointed. Its revenues fell by 3% like-for-like in the third quarter when analysts were expecting an increase of 1% on the same basis.

After falling by 7% at the start of the session, the number one luxury goods company, the largest capitalization on the Paris Stock Exchange, limited the damage at mid-session with a decline of 4.1%. In the wake of LVMH, Kering lost 1.8% and Hermès 1.3%.

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Ipsos, Rexel and Eramet, losing trifecta

Investors are also awaiting other meetings of the week, in particular the meeting of the European Central Bank (ECB) on Thursday.

“The October meeting should give the ECB the opportunity to lower its key rate a second time by 0.25%. The economic situation which is deteriorating, especially in Germany but also in France and inflation which is decreasing regularly in the euro zone make this monetary easing legitimate,” explains Emmanuel Auboyneau, associate manager at Amplegest.

In terms of non-luxury values, Teleperformance gained 5.8% thanks to Kepler Cheuvreux which switched to buying the value.

Stellantis drops 1.4% after indicating that its deliveries fell 20% in the third quarter.

Outside of the CAC 40, it’s a bit of a slaughter. Rexel loses 4% and Ipsos drops 11.5%, both companies having lowered one or more of their targets for 2024.

Eramet fell 15.6% after revising downwards its nickel and manganese production targets.

On other markets, the euro is stable against the dollar at 1.0895 dollars. Oil is falling a little. The December North Sea Brent contract lost 0.5% to $73.87 per barrel while the November WTI contract lost 0.5% to $70.23 per barrel.