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CAC 40 Sets Intraday Record on Defense Rally, Luxury Rebound

Caution prevails as traders await the U.S. jobs report alongside a Supreme Court tariff decision.

Overview

  • The Paris benchmark touched 8,317.82 in session on January 9, up about 0.84% at mid‑day and roughly 2% year to date.
  • Defense and aerospace names led gains, with Thales up more than 15% since the start of 2026, Airbus over 7%, and Safran nearly 6%.
  • Analysts linked the sector’s strength to heightened geopolitical risks, including a recent U.S. operation in Venezuela and tensions referenced by Washington over Greenland.
  • Luxury shares advanced after Beijing clarified that tighter controls target defense equipment, lifting Hermès, Kering, L’Oréal and leaving LVMH steady.
  • Domestic data stayed soft with industrial production down 0.1% in November and household goods spending off 0.3%, as 10‑year French and German yields held near 3.52% and 2.86%; BNP Paribas rose after a J.P. Morgan upgrade.