The Paris Stock Exchange helped by the fall in bond rates

The Paris Stock Exchange rose 0.38% on Tuesday, supported by lower interest rates in the bond market, where some investors are beginning to anticipate a halt to rate hikes from the European Central Bank after July.

The star CAC 40 index gained 27.52 points to 7,319.18 points. Monday, the Parisian rating had ended in sharp decline (-1.12%), driven by the decline in values ​​​​of the luxury sector, disappointed by Chinese economic data less encouraging than expected.

Tuesday’s session had started on the same gloomy trend, before statements by Bank of the Netherlands Governor Klaas Knot brought some optimism to investors.

“Reputed to be very virulent and in favor of rate hikes (among the members of the European Central Bank, editor’s note), he said this morning that underlying inflation is on a plateau”, reports Aurélien Buffault, director of the bond management of Delubac AM. “He also said that the July rate hike is on the way but that the September one would become a possibility”, whereas it was considered almost certain previously, he adds.

What cause a net relaxation of interest rates on the European bond market.

The German 10-year loan was at 2.38% around 4:00 p.m. GMT against 2.47% the day before at the close, the French at 2.90% against 3.01% and the Italian at 4.01% against 4 .15%.

The markets also took note of the pace of consumption in the United States in June, which rose but less than expected, and of a drop in American industrial production in June.

Corporate results from US banks were mixed, although overall they benefited from the Federal Reserve’s rate hikes.

Casino chose the billionaire duo

The Casino group gave the green light on Monday to an improved offer to recapitalize and restructure its debt presented by billionaires Daniel Kretinsky and Marc Ladreit de Lacharrière, now backed by the British fund Attestor to take control of the ailing Saint-Etienne distributor.

Casino shares dropped 9.99% to 2.83 euros and Rallye, the parent company of the distributor, 9% to 79 cents.

Luxury not yet at the party

On Monday, luxury stocks, very sensitive to the Chinese economic situation, had fallen sharply, weighed down by Chinese growth which accelerated in the second quarter but to a lesser extent than analysts expected.

“After the not very good economic figures in China, the big banks have updated their forecasts and are all counting on growth of 5% instead of 5.5% previously”, notes Aurélien Buffault, director of bond management at Delubac AM.

This downward revision of the Chinese growth scenario weighed on the title of Hermès, which fell 1.38% to 1,885.80 euros. LVMH ended stable (+0.03%) at 859.30 euros and Kering rose 0.76% to 494 euros.

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