(News Bulletin 247) – The Parisian index closed lower on Friday, weighed down by the decline in luxury which was penalized by the results of Richemont. On a weekly basis, the results are very dull for the CAC 40 which lost almost 1% at the end of this busy week of major events.

The Paris Stock Exchange ends the week sharply lower. The CAC 40 lost 1.17%, back near the floor of 7,300 points, at 7,338.67 points, this Friday evening.

The Parisian market was dragged down this Friday by the poor performance of its flagship segment, namely luxury. Kering lost almost 8%, Hermès 4.1% and LVMH 3.3%. L’Oréal, sometimes associated with the world of luxury, fell 3.25%.

French groups may suffer a negative cross-reading of the disappointing results of the Swiss Richemont, which lost 6.6% in Zurich.

“The entire luxury sector may fall on the stock market this Friday, following comments from Richemont management. Johann Rupert, the president, explained that he was confident in the group’s ability to navigate the current cycle while however, being ‘cautious’. The good news, given his statements, is that the slowdown remains cyclical. But the bad news is that it confirms that we are at the bottom of the cycle. management explained, we have no visibility on the recovery of this cycle,” explains Jie Zhang, analyst at the independent research firm Alphavalue.

Two different trajectories

Over the whole week, the results are also negative since the CAC 40 lost 0.95%, while the S&P 500 is preparing to have its best week of the year since it is currently gaining more than 4%. The American markets, for their part, welcomed the return of Donald Trump to the White House, with a program considered pro-business.

“Donald Trump’s economic program includes numerous measures to extend tax cuts for households and businesses, defense spending, support measures for real estate and health, etc., which total more than 10,000 billion dollars over 10 years The positive annual impact on growth would be around 0.4%”, Vincent Guenzi, Director of investment strategy at Cholet Dupont Oudart.

It is in this post-election euphoria that investors also digested the outcome of the meeting of the American Federal Reserve (Fed). The central bank, as expected, lowered its key rates by 25 basis points (0.25 percentage points).

Operators also noted a better-than-expected improvement in American consumer sentiment in November. Measured by the University of Michigan, the index measuring this consumer confidence jumped to 73 points in preliminary data, against 71 points expected and after 70.5 points last month.

“Economic data in the United States remains strong while the Fed continues its rate cuts, to the delight of a large number of investors – red wave and green wave dominate the week,” summarizes Florian Ielpo, head of macroeconomic research at Lombard Odier Investment Managers.

JCDecaux: bad poster

As for other stocks, JCDecaux plunged 12% after delivering disappointing outlooks for the fourth quarter.

Euronext limited its decline to 0.45% after having delivered its medium-term objectives, aiming in particular for an increase in its Ebitda by 2027 lower than expectations, according to Jefferies.

On other markets, the euro lost 0.9% against the dollar to 1.0709 dollars. Oil is down sharply. The January contract on North Sea Brent fell 2.6% to $73.65 per barrel while the December contract on WTI listed in New York lost 3.1% to $70.14 per barrel.