In an international context full of dangers, the large victory of Emmanuel Macron against Marine Le Pen in the presidential elections was not enough to wake up the Paris Stock Exchange.
The Cac 40 opened this Monday down 1.8% to 6461 points.
In addition to the uncertainties surrounding the aftermath of French politics and Emmanuel Macron‘s future room for maneuver (will he have a majority to govern?), investors, particularly in the luxury goods sector, were influenced by a negative international environment.
For the other world stock markets are not celebrating either. In Asia Pacific, at 9am, Tokyo and Sydney were losing more than 1.5% and Shanghai and Hong Kong more than -2%. The Chinese anti-covid reconfinement policy is indeed raising major concerns. Several major cities, including Shanghai but also some areas of Beijing, have been closed.
Wall Street had itself fallen sharply (- 2.8%) on Friday, its worst session since early March. And this, again, because of the Chinese risk weighing on the global economy, but also the announcement of a less accommodating monetary policy of the Fed. This raises the spectre of over-inflation. As for the other European leading indicators, they were also down sharply at the opening on April 25.
On the CAC 40, the declines in luxury stocks, which are very sensitive to the international context, were even more pronounced.
Kering, which had already fallen sharply last Friday in the wake of disappointing results for Gucci, published the day before, was down 2.65% at 9:40 am (compared to -1.63% at the same time for the CAC 40). Lvmh and Hermes were not left behind with similar falls, either -2.6% and -2.4%.
For these stocks, the spectre of a Chinese slowdown is obviously major. The prolonged war in Ukraine is not reassuring either. Even if the Russian market is far from reaching the level of its Chinese counterpart, the conflict is anxiety-provoking and destabilizing for trade and tourism in Europe.
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