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The Paris Stock Exchange lost 0.61% shortly after opening on Thursday, for a session shortened due to New Year’s Eve celebrations and at the end of a rollercoaster year marked by the Covid-19 pandemic.
On the Paris Stock Exchange, the CAC 40 index fell 34.21 points to 5,565.20 points around 09:30 (08:30 GMT) after a 0.22% drop.
Investors are taking advantage of the holiday season to dispatch current business in very limited volumes, noted the market participants still present.
For its part, the luxury sector is nevertheless “driven by the trade agreement which should be signed shortly between the European Union and China, one of their main markets” noted Franklin Pichard, managing director of Kiplink Finance.
As far as values are concerned, luxury is thus still in the spotlight: Kering is at the top of the CAC with +1%, LVMH (+0.6%) announced that the shareholders of Tiffany have voted by a very large majority in favour of the modified merger agreement announced on 29 October 2020, relating to the project of acquisition of the American jeweller by LVMH, an operation which is scheduled to be finalised on Thursday 7 January 2021.
Ultimately, recent events allow investors to plan for the long term. The festive period at the end of the year is also a very special one, as “many market players are absent” explained Mr Pichard. “As a result, fears of irrational movements during the holiday season are dissipating and risk assets are appreciating”, continued the manager.
Investors were also influenced by various news about vaccination. On the one hand, the UK was licensing the AstraZeneca vaccine. This miracle solution was long awaited because it is cheaper than the vaccine already distributed and can be stored in the refrigerator, which will allow for a large-scale vaccination campaign. In addition, the Chinese laboratory Sinopharm has announced that one of its five candidate vaccines is 79% effective.
Moreover, over the whole of 2020 – which will end on 31 December at 2 pm – the Parisian index fell by 6.5%, its worst score since 2018 (-11%). Also noteworthy is the strongest rise in the CAC index over the year 2020, with Hermès (+32%), which seems to have been totally immune to the vagaries of the crisis, ahead of LVMH in a pocket handkerchief with +25%.
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