(News Bulletin 247) – The flagship index of the Paris Stock Exchange rose slightly at mid-session this Friday driven by luxury which reacted to the good Chinese statistics of the day.

The Paris Stock Exchange is set to end the week on a good note. The CAC 40 gained 0.45% to 7,618.14 points at mid-session this Friday. Over the whole week, the Parisian index is currently up 0.61%.

This Friday’s session is especially marked by good Chinese statistics. China’s gross domestic product (GDP) growth fell to 4.6% in the third quarter, a one-year low. But this figure turns out to be higher than expectations, placed at 4.5%, according to Deutsche Bank. The German bank notes that activity improved in September, estimating that GDP should have reached 5% in the ninth month of the year against 3.7% in August.

Furthermore, retail sales in China, a measure of household consumption, were up 3.2% year-on-year, compared to 2.3% expected by the LSEG consensus cited by Reuters. Industrial production for the same month also exceeded expectations, showing a year-on-year increase of 5.4%.

>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio

Luxury at the party

“We reiterate our growth forecast for the fourth quarter at 5% year-on-year and expect upside risks if the government implements additional stimulus measures in the coming weeks,” concludes Deutsche Bank.

These waves of economic statistics are giving a boost to the luxury sector. Remember that, according to Bank of America, Chinese household spending represents around 30% of the income of groups in the sector.

Kering takes 5.3%, LVMH advances 3.2% while Hermès advances 1.7%. Pernod Ricard, a stock also dependent on China, gained 2%.

Investors also continue to digest the announcements from the European Central Bank (ECB) from the day before. The central bank lowered its rates by 25 basis points (0.25 percentage points) and its president, Christine Lagarde, gave a speech deemed accommodating by the market.

“Christine Lagarde’s statements have confirmed our view: the European Central Bank will continue its rate cuts during the next monetary policy meetings (we are counting on 100 basis points of cuts by the end of the first half of 2025) In particular, Madame Lagarde recognized that the risk of inflation potentially falling below the target seemed greater today than the opposite, while monetary policy remains restrictive,” judges Sebastian Paris Horvitz of LBPAM.

On non-luxury values, Essilorluxottica gained 0.1% after revealing growth below expectations in the third quarter. But the company said it expects an acceleration in the fourth quarter.

Virbac plunged 8.6% after also publishing disappointing activity for the third quarter.

On other markets, the euro is stable against the dollar at 1.0840 dollars. Oil is sluggish. The December contract on North Sea Brent lost 0.17% to $74.34 per barrel while that of November on WTI listed in New York lost 0.1% to $70.60 per barrel.