The stock market’s flagship index opened this Thursday at its highest level since its creation in 1987. A record already reached at the close of the previous day was confirmed at the opening. A record that owes much to the luxury sector.
During the day on Wednesday, the Paris Stock Exchange rose to 6955.10 points, surpassing its record high reached on 4 September 2000.
The luxury sector, which accounts for 25% of the total weighting of the CAC40, is no stranger to this performance. Despite soaring energy prices and production line problems, groups like Hermès performed very well. Strategists and investors are positive about the future.
It must be said that the recent publications of company results have reassured them of their ability to maintain their margins.
A bullish movement that was not disturbed by Jerome Powell’s announcement yesterday: the head of the US Federal Reserve announced on Wednesday evening that he would reduce the asset purchase programme by 15 billion dollars per month from mid-November, which should enable him to reduce his programme to zero by mid-2022. Unsurprisingly, the Fed’s main policy rate was kept close to zero, between 0% and 0.25%, and Jerome Powell felt that the Fed could be “patient” before raising them.
On the European Central Bank side, Christine Lagarde considered that a rate hike in 2022 was highly unlikely, due to inflation still being too low. The support of central banks during the pandemic is one of the reasons for the record level of the CAC40.
With this record well established, the CAC40 is now aiming for the symbolic 7,000-point mark https://libido-de.com/.
Read also > THE PARIS STOCK MARKET IN SEARCH OF A BALANCE
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