CAC 40 rises sharply as the luxury sector benefits from the lifting of restrictions in China
France’s CAC 40 reached 7,000 points for the first time in a year. A bullish trend that could well continue for the Paris Stock Exchange, at the beginning of a week marked by the Davos forum in Switzerland.
Having finished up again last Friday, and surpassed 7,000 points for the first time since February 11, 2022, the Paris Stock Exchange is starting the year 2023 in the best possible way. In the wake of the Asian markets, the CAC 40 has gained 8.49% since January 1, including 2.37% in the past week.
Despite the economic winds that were not expected to be favorable, the flagship stock market index rose 47.82 points to 7044.10 points today. This rise is in line with the banks’ forecasts.
And it is not without reason. In Europe, France and Germany finally posted positive growth figures in the last quarter of 2022, as the countries are weathering the energy crisis better than expected, with the mild winter causing demand and energy prices to fall. However, economists are calling for caution. Inflation in France is limited by the effects of the energy price shield and should rebound in the coming months.
A rise thanks to the easing of American inflation
On the other side of the Atlantic, the easing of U.S. inflation from 7.1% to 6.5%, its lowest level in a year, is also responsible for the rise in the CAC 40. The New York Stock Exchange finished largely in the green last week, reflecting the confidence of consumers and investors. As a result, long-term rates fell sharply to 2.63%, which had a positive impact on the value of equities and growth stocks. As a result, the major U.S. banks posted better-than-expected figures. A situation to be followed closely in the coming weeks, as many central bankers and finance ministers meet at the famous Davos economic forum.
The luxury sector benefits from this rise
Having enjoyed an exceptional stock market performance at the end of 2022, and continuing into the beginning of 2023 thanks to the easing of health restrictions in China, the luxury sector is currently driving the CAC 40. The LVMH group recorded a 12% gain, setting a new record. The share price rose 1.50% to 785.30 euros, while Hermès climbed 2.20% to 1651.00 euros. EssilorLuxottica gained 1.99 percent to 173.85 euros, and L’Oreal 1.84 percent to 373.90 euros.
Read also >Stock market: review of the first week of January
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