France’s blue-chip index scaled record highs today, with a boost from Airbus and Pernod Ricard that also lifted the broader European STOXX 600 index to a one-year high.
France’s CAC 40 index at one point rose to 7,387.29 points, beating a lifetime high of 7,384.86 points reached on January 5, 2022. The index was last up 0.9%, leading gains among its regional peers.
French stocks have risen nearly 14% so far this year, following a battering in 2022, boosted by hopes that the euro zone will narrowly avoid a recession and surging shares of luxury goods groups that rely heavily on Chinese shoppers.
“France has particularly leveraged the faster-than-expected Chinese reopening,” said Andrea Cicione, head of research at TS Lombard.
“The fact that there is significant chunk of consumer discretionary in there, particularly luxury goods as opposed to Germany for example, where consumer discretionary is mostly autos, is definitely a positive for France,” the analyst added.
Planemaker Airbus gained 3.1%, also boosting the pan-Europe STOXX 600 index, which rose 0.4%.
Airbus targeted 2023 jet deliveries, in line with its original estimate for last year, but slowed the production ramp-up of its best-selling A320neo jets.
Positive sentiment also spilled over from Asian markets as investors choose to cheer strong US retail sales data as good news for earnings rather than worry about it being likely to support interest rate rises.
All eyes will now be on European Central Bank speakers through the day, with board member Fabio Panetta backing the case for raising interest rates in smaller increments and avoid committing to future moves as inflation in the euro zone falls.
Irish Distillers owner Pernod Ricard gained 4% today after the French drinks maker delivered forecast-beating first-half profit and sales.
Meanwhile, French telecoms company Orange rose 5.6% as it said it expects to bolster cash flows and increase shareholder returns by 2025.
Source : RTE
