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As of midday on Wednesday, October 15, the Paris Stock Exchange is showing a remarkable increase of 2.56%, with thirty-seven of the forty stocks in the index moving into positive territory. This surge comes in a context marked by the easing of French bond yields and a relative calming of political tensions following Prime Minister Sébastien Lecornu's announcement to suspend pension reform. Notably, the session is dominated by a spectacular resurgence in the luxury sector, buoyed by LVMH's quarterly results surpassing expectations, and by stirrings in the telecommunications sector where a major consolidation deal is on the horizon.
The world's leading luxury brand emerges as the undisputed star of the session with a surge of 14.43% to €609.70, marking by far the most significant rise on the CAC 40. This spectacular recovery follows the release of quarterly results on Tuesday evening that reassured investors about the group's ability to return to growth. In the third quarter, LVMH achieved organic growth of 1%, ending several months of decline and exceeding market expectations that anticipated a contraction. Over the first nine months of the year, the group reported revenue of €58.1 billion, with a notable improvement in trends throughout the rest of Asia. The ripple effect on the entire sector is immediate and substantial. Kering gains 7.13% to €320.20, while Hermès rises by 6.91% to €2,166, confirming investors' renewed appetite for French luxury stocks. L'Oréal, although less directly comparable, also benefits from this resurgence of optimism with a 2.70% increase to €378.45. This collective performance of the sector significantly impacts the overall rise of the Parisian index, with these four companies alone representing about 11% of the CAC 40's market capitalization. The rebound comes after challenging months marked by concerns over Chinese demand and global consumption of luxury goods.
The telecommunications sector is also taking center stage in the stock market, bolstered by Tuesday's announcement of a joint offer from Bouygues Telecom, Orange, and Free-Groupe Iliad to acquire a large portion of Altice France's operations, the parent company of SFR. This proposal, which values the entire entity at over 21 billion euros with an acquisition amount of 17 billion euros, potentially marks a historic turning point in the configuration of the French telecommunications market. Bouygues is set to benefit the most, with a leap of 7.64% to 41.68 euros, positioning it as the second biggest gainer on the CAC 40. Orange also shows a more moderate yet significant growth of 3.43% to 14.04 euros. If this transaction materializes, it would end the price war that has characterized the sector for more than a decade and could allow operators to regain more comfortable margins. Investors also see it as an opportunity for industrial consolidation and infrastructure rationalization. However, Economy Minister Roland Lescure indicated that the government would be vigilant about the impact of this concentration on consumer prices and service quality. This announcement comes amid Altice France's restructuring efforts, having had to restructure its massive debt over the summer.
Beyond the two leading sectors of luxury and telecommunications, the session saw many other stocks benefit from a generally favorable context. The banking sector showed strong performance with Crédit Agricole up 2.80% at 17.06 euros, BNP Paribas rising 2.51% to 77.65 euros, and Société Générale gaining 2.25% to 56.26 euros, all benefiting from the easing of French bond yields that had surged in recent days. TotalEnergies advanced 3.34% to 51.93 euros, Saint-Gobain by 3.12% to 91.32 euros, while Stellantis increased by 2.83% to 8.61 euros, following an announcement the previous day of a massive $13 billion investment plan in the U.S. over four years, creating more than 5,000 jobs. Publicis also performed well, gaining 4.51% to 85.74 euros. On the opposite end, the few stocks in the red were marginal. Euronext fell by 2.24% to 126.80 euros, and Thales slipped 1.13% to 254.70 euros, with no particular catalyst for these movements. Michelin rebounded by 1.15% to 26.41 euros after being severely penalized the day before due to a downgrade in its annual targets. The session reflected a general return of investor confidence on the Paris market.
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This article was automatically translated by AI. The information presented is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any financial instrument, or a solicitation. Readers should conduct their own research before making any decisions. Investing in the stock market involves risks, including the loss of capital. Past performance of an asset or market is not indicative of future results. Any investment decision should take into account your personal financial situation, objectives, and risk tolerance.
