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CAC 40 Hits All-Time High at 8,271 on Earnings Strength and Eased Political Risk

Earnings strength outweighed the downgrade in investors’ calculus.

Overview

  • The Paris benchmark set a new intraday record at 8,271.48 points and a record close at 8,258.86, topping previous highs from May 2024.
  • Corporate results drove the advance, led by Edenred’s 19.64% surge on better-than-expected third-quarter sales, with recent gains in LVMH also boosting the index.
  • Political risk receded after the prime minister avoided a censure vote by pledging to suspend the pensions reform, easing near-term fears of a dissolution.
  • Global sentiment improved on hopes of a USChina trade de-escalation and a robust US earnings slate, reinforcing risk appetite for European equities.
  • The rally unfolded despite S&P cutting France’s sovereign rating to A+, with 10-year yields little changed around 3.36% and the spread over Germany still elevated near 0.78 percentage point.