CAC 40 Celebrates End of US Shutdown with a 1.32% Rebound at Close
On Monday, November 10, the Paris stock exchange closed with a significant rebound, with the CAC 40 rising 1.32% to 8,055 points. This upward movement comes amid renewed optimism about the imminent resolution of the US government shutdown that has been paralyzing the federal administration for over forty days. Freed from the burden of this political uncertainty, investors quickly returned to buying, particularly in cyclical and banking stocks that had been severely affected in the previous session.
A Welcome Rebound After a Chaotic Week
Monday's session is characterized by a catch-up logic after a particularly tumultuous week for European and global markets. The deadlock in Washington over the budget and the subsequent absence of US economic data created a climate of uncertainty, not conducive to risk-taking. According to analysts' estimates, this government shutdown weighs on US growth by about 0.2 percentage points per week, threatening the performance of the final quarter of 2025. However, signals from the US Senate suddenly became clearer on Monday morning, indicating that a group of eight Democratic senators would agree to vote alongside Republicans to resolve the budget impasse. This potential crisis resolution immediately reassured market operators, who were only waiting for a sign to resume buying. As a result, the CAC 40 benefited from this new momentum, slightly outpacing other major European markets. Frankfurt's Dax rose by 1.51%, while London's FTSE 100 posted a more modest gain of 0.65%, reflecting an uneven distribution of optimism across regions.
Banks lead the way, luxury follows suit
Today's rebound was led by the banking sector, with its flagship stocks posting remarkable gains. Société Générale outperformed all its CAC competitors with a surge of 4.14%, closely followed by Capgemini's 4.13% rise. BNP Paribas, another giant in French finance, also benefited from the movement with a 2.31% gain. These performances reflect investors' relief regarding the potential recovery enabled by the end of the US administrative paralysis, a significant client for French financial institutions. However, the rebound wasn't limited to banks. The luxury sector, dominated on the stock exchange by high-quality heavyweights, also experienced a dynamic session. Kering, parent company of Gucci and Saint Laurent, climbed 3.52%, while LVMH, the sector's giant, gained 2.44%. Hermès International recorded a more modest increase of 1.36%. These luxury performances indicate a renewed appetite for growth stocks and cyclical assets, typical during times of improved market sentiment. Accor, the hotel and tourism group, also benefited from this momentum with a 2.35% gain.
Defensive Stocks Lag Amid Prevailing Optimism
While cyclical stocks were shining, defensive stocks and those less sensitive to economic cycles lagged behind, only managing symbolic gains. Danone was nearly stagnant with a negligible change of -0.03%, while L'Oréal and Orange each fell by -0.14%. Eurofins Scientific recorded the biggest drop of the day with -0.48%, in an environment where attention was focused on sectors positively impacted by the improving overall sentiment. This pattern reveals a shift in preference toward riskier, growth-oriented investments, with portfolio managers gradually withdrawing from safe-haven stocks as sentiment brightens. This typical rotation signals the transition from a crisis phase to a phase of relative normalization, where investors regain interest in procyclical assets. Utilities and defensive sectors, which lead during periods of tension, have returned to a less central position in tactical allocations.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
