Paris Bourse Climbs as CAC40 Surges, Boosted by Teleperformance and LVMH Amid Economic Uncertainty
The Paris Bourse saw a modest yet steady recovery on Thursday, as the CAC40 index climbed by 0.6%, closing just below the 7,500 mark. The market gained momentum throughout the day, with low trading volume due to the national holiday of mourning for Jimmy Carter. Only 1,150 million euros were traded in the space of eight hours, but this did little to dampen the market’s positive sentiment.
Leading the charge were companies like Teleperformance (+3.6%) and Bureau Veritas (+2%), which drove the CAC40 to its gains. While LVMH also made a notable contribution (+2%), the major heavyweights largely held steady, with the exception of Renault, which dropped by 2%. The automotive sector faced some challenges, with Michelin (-1.6%) and Stellantis (-0.8%) seeing losses.
Despite the positive day for the Paris stock exchange, concerns about Donald Trump’s upcoming inauguration remain high, with trade war fears lingering. Trump is reportedly planning to declare a national economic emergency to implement universal tariffs aimed at reducing the US trade deficit, potentially bypassing Congressional approval. This uncertainty continues to create pressure on the market, particularly regarding future trade relations.
On the foreign exchange market, the euro continued its weakening trend, dropping by 0.2% to just below $1.0300, after recently hitting a three-year low against the US dollar. The ongoing political instability in the eurozone, combined with slow economic growth, adds to the pressure on the euro, with many expecting the European Central Bank (ECB) to provide further monetary support in the future.
In economic news, Germany’s industrial production showed a positive rebound, increasing by 1.5% in November after a 0.4% decline in October, while the country’s foreign trade balance posted a surplus of 19.7 billion euros for November, up from 13.4 billion euros the previous month. Meanwhile, US government bond yields stabilized after rising sharply the previous day, with the 10-year US Treasury yield easing slightly to 4.69%.
The price of oil rose by 0.9% to return to the $77 per barrel mark, bolstered by optimism around global economic recovery. In company news, Airbus announced a new order from Taiwan’s Starlux Airlines for five additional A350F freighters, doubling their original order from last year. Sanofi also made headlines, revealing that its new subcutaneous formulation of Sarclisa has met the primary endpoints of a crucial Phase III study for treating relapsed or refractory multiple myeloma.
The Paris market remains vigilant as geopolitical and economic uncertainties continue to shape trading dynamics, but for now, the CAC40’s positive momentum offers some hope for investors.
