CAC 40 Soars Over 2% due to Dazzling Luxury Stocks

Cac Futures

France’s benchmark CAC 40 is firmly in positive territory around early afternoon on Wednesday, buoyed by a strong performance from luxury stocks following LVMH’s robust third-quarter sales, which indicate a recovery in global luxury demand. The CAC 40, having surged to 8,130.72 earlier in the session, was up 170.33 points or 2.15% at 8,089.35 recently. Investors are responding to several corporate news items, alongside monitoring the political landscape.

LVMH is experiencing a remarkable increase of nearly 15% due to sales in the third quarter surpassing expectations, driven by a resurgence in Chinese demand. Hermes International is experiencing an increase of 6.5%, Kering is advancing by 6.6%, and L’Oreal is gaining approximately 2.5%. Bouygues is experiencing an increase of 7.5% following reports that Bouygues Telecom, Free, and Orange have put forth a 17 billion euro non-binding joint bid to acquire Altice’s French assets. Publicis Groupe is up 4.3%, Orange is advancing 3.4%, Saint Gobain is rising 3.3% and TotalEnergies is gaining about 3.2%. Credit Agricole, Stellantis, Societe Generale, Capgemini, and BNP Paribas have experienced increases ranging from 2.2% to 2.7%.

Notable increases are observed in the shares of Dassault Systemes, Carrefour, Vinci, Bureau Veritas, AXA, Michelin, ArcelorMittal, Accor, STMicroElectronics, Veolia Environment, Legrand, and Pernod Ricard. Meanwhile, Euronext, Thales, Unibail Rodamco, and EssilorLuxottica are experiencing declines, with losses ranging from sharp to moderate. In economic news, France’s consumer price inflation accelerated as initially estimated in September, reaching the highest level in eight months, according to the latest data from the statistical office INSEE.

The consumer price index increased by 1.2% year-over-year in September, outpacing the 1% increase observed in the preceding month. This aligns with the preliminary data released on September 30. According to Eurostat, Eurozone industrial production experienced a decline of 1.2% month-over-month in August, following an upwardly adjusted increase of 0.5% in July. In August, the annual growth rate of industrial production in the Eurozone decelerated to 1.1%, down from 2.0% in July. The CAC 40 has experienced an increase exceeding 2%, driven by the impressive performance of luxury stocks.