The flagship index of the Paris Stock Exchange broke a new absolute record at the close on Friday, shining thanks to numerous company results, starting with that of the luxury giant LVMH.
The CAC 40 index finished at 7,634.14 points, well above its previous peak reached on December 15, 7,596.91 points. However, he did not manage to erase his highest point, 7,653.99 points, reached on December 14.
Its increase in one session is the most significant since January 4, 2023.
It is mainly driven by the spectacular progress of LVMH, which gained more than 12% after the publication of its annual results, and experienced its best performance since 2008.
LVMH is the largest company listed on the Paris Stock Exchange and is now worth more than 385 billion euros. Its weight in the calculation of the CAC 40 is all the more important: its variation accounts for more than 10% in the weighting of the index.
Beyond its weight in the index, these results are also important for general investor sentiment, underlines Raphal Thuin, director of capital market strategies at Tikehau Capital.
The session marks a comeback for the stock, which had fallen by almost 27% between mid-July and mid-January.
But the world number one luxury company presented annual results on Thursday which satisfied investors in every way, contrary to the cold reception reserved during the last two financial points, in July and October.
The year 2023 was another record year, according to the group which owns, among others, the Louis Vuitton, Dior, Tiffany and Mot & Chandon brands, with sales up 9% and net profit up 8%. .
In addition, sales in the United States, the margin rate and revenues of the wine and spirits division positively surprised analysts.
The entire luxury sector has taken action, such as Kering (+7.85% 384.80 euros), Herms (+6.63% 1,966.20 euros), or even in cosmetics with L’Oral (+2.94% 445. 10 euros).
Falling inflation
In addition to LVMH, global stock markets are buoyed by the prospect of lower interest rates by central banks in 2024. After having carried out a brutal monetary tightening, the sharp slowdown in inflation is now forcing them to consider lowering their key rates.
Again on Friday, investors learned that inflation in the United States had stabilized at 2.6% in December in the United States according to the PCE index. The measure, which does not take into account the prices of energy and food, which are more closely watched by central banks, continued to decline.
Faced with an American economy that remains afloat despite historically high interest rates, investors believe that central banks will succeed in bringing inflation back to the target of 2% while avoiding going into recession.
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Blazing results
In addition to LVMH, many other company results allowed stocks to take off on Friday.
There were concerns at the end of 2023 looking at the economic figures and the speeches from companies on the ability to maintain their margin, but the results of the last few days are encouraging, confirms Mr. Thuin.
Remy Cointreau also climbed 15.16% to 101.25 euros, taking Pernod Ricard in its wake (+7.85% to 156.55 euros).
The company specializing in electrical solutions and advanced materials for high-tech industries Mersen jumped 10.10% to 33.80 euros after announcing a record turnover in 2023.
In health, it was Sartorius Stedim Biotech which jumped 6.11% to 241.40 euros.
The French advertising display giant JCDecaux gained 4.83% to 18.87 euros.