Financial Storm in Paris: CAC 40 Breaks Historic Record, Farmer Protests and Global Tensions!

The French capital Paris hosted a new record in financial markets. The CAC 40 index closed just above 7,640 on Monday, maintaining its record for the second session in a row. Throughout the week, investors focused on monetary policy decisions by the Bank of England and the US Federal Reserve, as well as quarterly results from US tech giants. Meanwhile, escalating tensions in the Middle East affected market sentiment.

In domestic news in France, farmers blocked multiple roads in protest against falling incomes, low pensions, administrative complexity and foreign competition. On the corporate front, Essilorluxottica posted significant gains of 1.37 percent, Danone 1.31 percent and Thales 1.22 percent, with LVMH also contributing with a 0.48 percent increase. On the downside, Bouygues suffered the biggest losses with 3.12 percent, Eurofins Scientifique 1.47 percent and Pernod Ricard 1.41 percent.

Other market drivers include the impressive performance of the luxury goods sector. After LVMH announced its financial results, its shares rose 12.8 percent, dragging Kering and Hermès (up 6.6 percent each) behind it. These developments helped the CAC 40 to rise about 3.5 percent on a weekly basis.

On the other hand, personal consumption expenditures in the US rose 0.7 percent in December 2023 and incomes rose 0.3 percent. This was a slightly higher growth than expected. In the Eurozone, French household confidence rose two points to 91 in January, but remained below the long-term average (100). In Germany, consumer sentiment deteriorated sharply in the run-up to February.

These developments highlight the dynamic nature of the French economy and financial market. Global economic events, political developments and sectoral performances have a significant impact on major indices such as the CAC 40. Investors and analysts are closely watching how these factors will shape future market movements.