After trading in the red since Monday, the Paris stock market ended the week on a high note, gaining 1.24% on Friday to 7,319 points, buoyed in particular by a rebound in the luxury goods sector, with LVMH (+2.4%) and Hermès (+2.3%) in particular.
Despite this rebound, the Paris index lost 2.5% over the week.

The markets were buoyed by optimism regarding the US debt ceiling issue, with Republican leader Kevin McCarthy assuring us that "the ceiling will be raised".

The mood also warmed up after the release, at 2:30 p.m., of several major indicators, including the US PCE inflation rate, which came in at +0.4% and +4.7% year-on-year (excluding food and energy); it was expected to be 0.1% lower on an annualized basis and unchanged on a sequential basis (instead of rising).

Still on the statistics front, consumer spending in the US rose by 0.8% in April on the previous month, according to the Commerce Department, well above consensus (+0.4%), on 0.4% income growth.

The Commerce Department also reported a 1.1% increase in US durable goods orders in April, following a 3.3% rise in March (revised from an initial estimate of 3.2%).

Nevertheless, excluding transportation equipment, US durable goods orders fell by 0.2% in April.

Lastly, traders took note of the UMich confidence index for the USA: it rose by +1.5Pt to 59.2, beating expectations (58), which does not further depress US T-Bonds.
US T-Bonds are only tightening by +3.3pts to 3.844%, but mortgage rates are once again flirting with the 7% mark

OATs are still struggling: they are gaining +4pts in yield to 3.112%: we are approaching the worst levels of 2022 (December) and 2023 (early March), since 3.25% is not far off.

Unsurprisingly, the pressure on interest rates is taking its toll on gold, which is down by almost -0.8% to $1,942/ounce.

In Paris stock news, Casino has announced the opening of a conciliation procedure with its financial creditors, as well as the signing of an agreement with Les Mousquetaires to extend their partnerships and optimize their networks.

Credit insurance company Coface reported Thursday evening a 17% increase in net income, group share, to 61.2 million euros for the first three months of the year, on sales up 11% to 475.1 million.

After suspending its industrial activities in Russia until March 2022, Michelin announces that it has signed an agreement with Power International Tires for the latter to take over its two local companies, Michelin Russia Tyre Manufacturing Company and Camso CIS.

Atos announces that the US Court of Appeals has overturned a lower court ruling that held Syntel, now part of Atos, liable for $570 million in damages to be paid to TriZetto.

Finally, Airbus announces that ITA Airways, Italy's national airline, has taken delivery of its first A330-900, leased from Air Lease Corporation. It will join its fleet in June to serve new long-haul destinations.


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