CAC 40 Suffers Poor Morning on Friday as Banks Down and Lafargeholcim Cuts 2018 Outlook

on Nov 18, 2016
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Mirroring its counterpart in Germany, the DAX, the CAC 40 opened the last trading session of the week positively before dropping into the red in early trading, dragged down by the banks. The CAC finished Thursday 0.6% up in what was a good day for technology companies, consumer goods and commodities.

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The main drivers on European markets today are positive employment and construction data that came out of the U.S. yesterday, a softened euro and Yellen’s testimony to Congress essentially confirming rate rises to be announced in mid-December.
The biggest gainers were luxury goods holding LVMH Moet Hennessy Louis Vuitton SA, which gained 1.88% following the announcement of a 300 million euro share buyback program Wednesday and positive analyst comments. Remy Cointreau, the alcohol producer most well-known for its brandy of the same name fared even better, up 3.74%, the day’s biggest gain. Management consultants CAP Gemini were also up by 1.67% and Air Liquide, which produces industrial gases and supplies related services also had a positive session, recording a 1.51% gain.

The fallers on Thursday included Sodexo, which lost 1.12% after company results showed the catering company had seen a 45 million euro drop in revenues from its home territory as the French tourist industry suffered from the recent wave of Islamist attacks. However, the company is recovering today with a 2.13% gain so far.
The day’s biggest loss was suffered by Vallourec, which lost 3.75%. The company, which provides tubular solutions serving Energy and Industry markets announced earlier in the week the acquisition of a majority stake in China-based Anhui Tianda Oil Pipe Company. Euronext, which operates European stock exchanges closed the day down by 1.57%.

At midday today, the CAC 40 is 0.55% down as a drop in oil prices impacted energy stocks and banks are down. Renault and Peugot are both up today following an announcement from Volkswagen announced 30,000 job cuts worldwide, with 0.62% and 0.43% gains respectively, though both were earlier showing uplifts of around 1%.
In the banking sector Credit Agricole (-0.37%), BNP Paribas (-0.38%) and Societe Generale (-0.55%) are all down today. Chemicals company Solvay is the biggest loser so far with a 3.46% loss. Unibail-Rodamco, the commercial property investor, is down 2% on firming up belief the Fed will raise interest rates in December. Yellen’s testimony to Congress yesterday all but confirmed this.
Building materials producer Lafargeholcim is having another shaky day, down 2.75%. The company hosted its capital markets day today and while the board promised to increase returns to investors it pared back its earnings outlook for 2018. Media Group Vivendi is also down almost 2%.

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