At its highest for twenty-one years, the CAC 40 is benefiting from the rebound in luxury and energy

Twenty one years ! It took more than two decades for the CAC 40 to return to its zenith reached on September 4, 2000. The flagship index of the Paris Bourse set a new closing record on Tuesday, November 2, at 6,927.03 points, close to 5 points more than the previous one. ” It was time ! “, quips Frédéric Rollin, investment strategy advisor at Pictet AM. The Parisian market behaves first by mimicry with international markets, and particularly Wall Street. The main US stock indices – Dow Jones, Nasdaq, rich in technology stocks, and S&P 500 – are also moving at historic levels.

The CAC 40, which has jumped 24.79% since January, has however been characterized by a certain dynamism in recent months. ” After betting on technology stocks at the start of the year, investors played companies likely to benefit from the economic recovery, such as those in the luxury sector, which are highly represented in the CAC 40 “, observes Alexandre Baradez, market analysis manager at IG. A movement amplified by the good half-year results of companies published in recent days.

Read also Article reserved for our subscribers CAC 40 companies exceed their 2019 peaks

The index benefited from the rebound in luxury goods after the drop in late August, amid fears about the situation in China, one of their main markets. It also benefited from the return to favor of the energy sector, while banking stocks were well oriented. , details John Plassard, investment specialist at Mirabaud. This record comes as French growth is expected to be around 6.25% in 2021, a level higher than that of its European neighbors.

Good surprises on the results

For the moment, it is always the good surprises on the results of the companies which carry the market and, in the last days, a withdrawal of interest rates, especially in the long term. Indeed, after a strong surge in inflation expectations for more than a month, they have fallen quite sharply in recent days. “, wrote, Tuesday morning, Sebastian Paris Horvitz, director of research at Banque Postale Asset Management.

However, one can wonder about the time it will have taken for the Paris Stock Exchange to regain its highs. Reached while technology stocks, benefiting from what would later be called the “Internet bubble”, weighed heavily in the index, the level of 6,000 points will only be crossed in an ephemeral way in June 2007. The crisis subprime will then precipitate the CAC 40 to 2,500 points. A floor that he had already touched after the attacks of September 11.

You have 57.61% of this article to read. The rest is for subscribers only.

source site