CAC40: record rise in luxury goods propels shares above 7,700

(CercleFinance.com) - The Paris Bourse soared +2.
1% to 7.730, with the luxury goods sector (+9% thanks to a second package of measures to stimulate the Chinese economy) in a state of bullish hysteria. LVMH and Kering +9.5 and +11%, Hermès +9%, L'Oréal +6.5%, i.e. over 600 billion in 'capi' added in just a few hours by these 4 stocks.)
As a result, the CAC40 index returned to positive territory for the month of September.
Luxury goods also boosted the E-Stoxx50, which broke through the +2% barrier... and the 5,000Pts barrier, just 2% off its all-time high.
The DAX40 also set a new all-time high at 19,253Pts (+2%).253Pts (+2%) before easing slightly to 19,180 (+1.4%).

Since its annual low on August 6, the CAC has rallied by more than 8.5%, reflecting optimism about interest-rate trends and a soft landing for the economy in the months ahead. Over the week as a whole, the Paris index is now up +3.1%.
On Wall Street, the rise was more measured, but the S&P500 (+0.3%) set a 43rd all-time record (at 5,750pts).
The Nasdaq, which was up +1.3% at the opening (18,327), saw its lead rapidly eroded: +0.2% at 18,120pts.
Optimism is fuelled by US GDP, which rose at an annualized rate of 3% in Q2 2024, according to the Commerce Department's third estimate, in line with its second reading a month ago.

This growth, a sharp acceleration on the 1.6% seen in the previous quarter, was mainly attributable to higher consumer spending, private inventory investment and business investment.

In addition, the PCE price inflation index was confirmed at +2.5% unadjusted and +2.8% excluding food and energy prices, levels significantly down on those observed in the previous quarter.
Against all expectations, the number of jobless claims fell last week in the USA, suggesting that the market is not easing as quickly as expected.

This number fell by 4,000 to 218,000 in the week to September 21, according to the Labor Department, whereas economists were expecting it to rise to around 225,000.000.

Durable goods orders in the US stagnated in August, according to the Commerce Department.

Inflation fears have eased recently following several reassuring statistics, but could resurface in the event of a nasty surprise.

In addition, Fed Chairman Jerome Powell will discuss economic conditions this afternoon at a conference organized by the Federal Reserve Bank of New York.

On the bond market, the yield on 10-year US government bonds edged up +3pts to back above 3.815%, which according to some observers shows that traders fear that the Fed has struck "too fast and too hard".

The German Bund with the same maturity, the benchmark rate for the eurozone, eased slightly (-1.3Pt) to around 2.176%.
Our OATs deteriorated by +0.5Pt to 2.98%, i.e. 2Pts more than the Spanish 10-year with 'Bonos' at 2.958%.

On the currency front, the dollar fell back -0.3% to 1.1180 against the euro, which had equalled its annual zenith, above 1.1210.

Despite China's double stimulus plan, oil tumbled by -2.5% to 71.8 in London, and US light crude (West Texas Intermediate, WTI) lost 2.5% to 68.3 dollars, falling back below its closely watched 70-dollar support.

Copyright (c) 2024 CercleFinance.com. All rights reserved.