The CAC 40 increased by 0.4% to 7,860 on Tuesday, marking a third consecutive session of gains. This upward movement was bolstered by declining oil prices and bond yields, which helped to alleviate rising apprehensions regarding AI valuations. Investors are growing sceptical about the timelines for return on investment associated with substantial corporate capital expenditures in AI, particularly in the context of high borrowing costs.
Gains were primarily driven by Société Générale (1.8%), L’Oréal (1.3%), Danone (1.3%), Orange (1.3%), and EssilorLuxottica (1.2%). In contrast, semiconductor giant STMicroelectronics experienced a significant decline, dropping 4.7% amid a broader tech retreat.
Meanwhile, LVMH experienced a decline of 1.0% following the announcement of third-quarter organic sales that fell short of expectations, primarily impacted by lacklustre demand in China. Hermès declined by 0.8% and Kering by 0.2%, as LVMH’s performance, often regarded as a leading indicator for the luxury sector, raised concerns regarding the robustness of the overall recovery.
