The CAC 40 closed Friday’s trading session in the red, weighed down in particular by luxury goods stocks. The French stock market did not benefit from the Fed’s rate cut, nor from the US trend.
Market trend
CAC 40 never expected a green sessionor at least close to equilibrium. The Paris flagship index did open with gains, but only for three minutes. The speech by Jerome Powell, Chairman of the US Federal Reserve (Fed), and the announcement of a further 25 basis point cut in key interest rates did not benefit the French markets.
The Paris Bourse was dragged down by luxury goods stocks. The sector had to digest yet another false hope from China and poor results from Richemont (see below). The CAC 40 thus had a gloomy session, closing with a weekly loss of 0.97%, the third in a row for the index. On Wall Street, the indices continue to break records, with the Dow Jones closing in on 44,040 points and the S&P 500 aiming for 6,000 points before the close.
Indexes in France and around the world
| CAC 40 | – 1,17% | 7,338.67 points |
| SBF 120 | – 1,08% | 5,570.49 points |
| DAX | – 0,76% | 19,209.08 points |
| FTSE 100 | – 0,95% | 8,062.35 points |
| Nikkei | + 0,30% | 39,500.37 points |
| Dow Jones* | + 0,70% | 44,036.45 points |
| Nasdaq* | – 0,07% | 19,256.68 points |
| *index closed at the close of European stock markets | ||
Fact of the day
This session was a real disappointment for the luxury sector. Whereas the main stocks were among the front-runners yesterday, they joined the bottom of the CAC 40 rankings this Friday. Kering was down 7.96%, followed by Hermès (- 4,01%), LVMH (- 3,33%), Christian Dior (- 3.29%) and L’Oréal (- 3,25%).
The first disappointment came from China. Luxury companies logically hoped that the Chinese government would be forced to show more muscle with the formalization of Donald Trump’s return. They’ll have to wait and see, however, as Beijing’s main aim was to relieve local authorities of some 1,300 billion euros in debt. A measure that is not considered effective enough to truly revive the domestic economy of the world’s second largest power. Observers do not despair of the announcement of large-scale measures, but are concerned about the reaction time of China’s leaders.
The second blow is the publication of Richemont. The Swiss giant reported a 20% drop in net profit for the April-September period. The downturn was caused by watchmaking (-17%), but above all by its activities in Asia. In particular, the company recorded a significant drop in sales in China (-27%). The Geneva-based luxury goods group’s figures conclude a season of disappointing results for the sector, which is eagerly awaiting a Chinese rebound.
Stocks in the spotlight
The Top
France’s former technology flagship continues to restructure in a bid to halt its spectacular decline since 2021. This Friday, Atos has announced the launch of a capital increase of over 233 million euros. This project, which was rejected last February, is part of the French IT group’s restructuring plan approved by the Nanterre Commercial Court.
Last July, Atos reached an agreement with its creditors to reduce its debt, but above all to guarantee a capital increase of 175 million euros on their part. The aim is to finance the Group’s general needs, reduce debt and aim for a credit rating of “AAA”. “BB by 2027.
In its press release, the company states that subscriptions will be open from November 14 to November 25 inclusive, at a price of 0.0037 euros for each new share. It also points out that this capital increase “will result in significant dilution for existing shareholders”.. Despite this, the share gained 2.85%, making it the second-biggest gainer on the SBF 120.
The Flop
JCDecaux failed to convince investors, despite rising sales. The share price fell sharply during the session, down 12.01%, the biggest loss on the SBF 120. The advertising giant reported sales up 10.5% to 872 million euros.
In particular, the group highlighted solid figures for digital activities (+18.5%). Above all, it benefited from “the positive impact of the Paris Olympic and Paralympic Games”.it states in its press release. Last March, the company estimated that the sporting event would boost its sales by 5%.
In the same vein, street furniture advertising grew by 8.4%, as did transport advertising, up 14.8%. However, investors are disappointed by the Group’s outlook. JCDecaux expects growth “moderate single-digit” growth for the fourth quarter. It is particularly concerned about the budget debates in France and the UK, which could penalize its business.
Quote of the day
“The recommendations in this report were already urgent, given the economic situation we find ourselves in today. They became even more urgent after the American elections. […] There is no doubt that Trump’s presidency will mark a big difference in relations between the United States and Europe.”
Mario Draghi, former Italian Prime Minister, has published a 400-page report on reviving growth on the Old Continent. At a European summit in Budapest, Hungary, the former governor of the European Central Bank from 2011 to 2019 presented his proposals, which focus in particular on digital innovation, green transition and the defense industry.
Monday November 11th agenda
This Monday, the French take advantage of a public holiday to commemorate the armistice of the First World War. As on November 1st, the Paris Bourse will once again remain open. On paper, however, the day looks fairly quiet. No company news or major macroeconomic statistics. We’ll have to turn to Singles’ Day in China. Now a veritable commercial holiday, this event could be a good indicator of domestic consumption in the country.
Editor’s recommendation
Danone has once again confirmed its good form thanks to a positive third quarter. The food group achieved organic growth of 4.2%, exceeding analysts’ expectations. With a gain of around 12% on the Paris Bourse, the stock is one of the best performers on the CAC 40. Find out more about Danone.