[STOCK MARKET UPDATE] Luxury goods drag down markets

Thursday’s trading session is proceeding cautiously on the major financial markets. While luxury goods are dragging markets down and semiconductors are pushing them up, the easing of geopolitical tensions has made investors more attentive.

In Paris, as elsewhere in Europe, investors are responding favorably, albeit tentatively, to the easing of tensions between the United States and Iran. At the opening, the CAC 40 rose 0.1%, the FTSE 100 climbed 0.36%, and the DAX rose very slightly by 0.08%. The markets are indeed reflecting a less anxious climate following Donald Trump‘s statements temporarily ruling out the possibility of immediate military intervention against Iran. This statement was enough to reduce investor nervousness, which had been very sensitive in recent days to the risks of conflict in the Middle East.

Luxury goods sector suffers heavy losses despite Richemont’s results

The luxury sector played a key role in the Paris market’s performance this morning, but not in a positive way. Initially, many stocks in the sector opened higher, before falling after the publication of Richemont‘s quarterly results, which were well above expectations. Buoyed by strong demand for Cartier jewelry and high-end watches, particularly in the United States and the Middle East, the Swiss group recorded 11% growth in revenue at constant exchange rates, where more modest growth had been expected.