(News Bulletin 247) – The Parisian index rose at the start of the afternoon this Monday, supported by the progress of luxury groups which are reacting to the change of gear of the Chinese authorities on monetary policy.

The CAC 40 is on track to record an eighth consecutive session in the green. The Parisian index rose 0.5% to 7,466.76 points this Monday at the start of the afternoon.

The Paris Stock Exchange is supported by announcements from China. The Politburo, the office of the Communist Party’s central committee, has said it wants to adopt a “slightly relaxed monetary policy” in 2025, which, according to Bloomberg, constitutes the first change of tone on this area in 14 years. And augurs new recovery measures to support activity.

“The last time this position was adopted was during the period 2008-2010 corresponding to the subprime crisis in the United States. Then, from 2011 to 2024, monetary policy was described as ‘prudent’ by the authorities”, underlines Alexandre Baradez, head of market analysis at IG France.

Vivendi shareholders called to vote

“These announcements implicitly show the authorities’ desire to achieve growth of 5% in 2025 but also and above all to counter the domestic risks linked to future American trade policy,” he continues.

According to China’s official news agency, Xinhua, the Politburo also called for “more proactive” fiscal measures to be implemented in 2024.

These positive signals sent by China are pushing the luxury sector upwards. Kering gained 3.6% and LVMH 2.6%. Also very exposed to China, JCDecaux is up 4%.

Vivendi gains 1.4% while its shareholders are invited during a general meeting to vote on its split into four entities. The general meeting will begin at 3 p.m. this Monday.

The group’s desire to split into four has been criticized by certain investors, such as Phitrust and CIAM, who believe that it will not create value. This, because the three new companies on the stock exchange (Canal+ in London, Havas in Amsterdam and Louis Hachette Group on Euronext Growth) would be listed on markets where Groupe Bolloré (which currently holds a little less than 30% of Vivendi) will be able to increase its influence. without having to launch a public offer, explained Phitrust and Ciam.

Publicis takes 1.6% while the Wall Street Journal reported Sunday that its competitors Omnicom and Interpublic could get closer. Which Publicis could, paradoxically, benefit from.

On other markets, the euro is stable against the dollar at 1.0569 dollars. Oil is rising. The February contract on North Sea Brent rose 1.15% to $71.95 per barrel while the January contract on WTI listed in New York rose 1.3% to $68.08 per barrel. . China’s announcements boost black gold prices. Furthermore, investors are assessing the situation in Syria after the fall of Bashar al-Assad’s regime this weekend.