CAC 40 Struggles, Weighed Down by KERING Hit by Saks Bankruptcy

A Gloomy Session Dominated by Setbacks in the Luxury Sector

By midday on Thursday, January 15, the Paris Stock Exchange is showing a gloomy face. The CAC 40 is down 0.35% at 8,301.9 points, in a market struggling to find a clear direction. The atmosphere is heavy, primarily due to the downturn in luxury stocks weighing on the Parisian benchmark index. With only 17 stocks rising compared to 23 declining, the negative trend is clearly dominating the market. Trading volumes remain surprisingly low for a midweek session, indicating a widespread caution among investors.

Kering Plummets, LVMH and the Luxury Sector Under Pressure

The luxury sector is attracting all the negative attention this Thursday. Kering's stock is dramatically plummeting by 4.14% to 298.35 euros, marking by far the steepest drop of the CAC 40 by midday, with LVMH also declining by nearly 2%. Both companies are being hit hard as the bankruptcy of Saks reveals a risk of unpaid or partially recovered debts that these groups hold with the retailer, sparking immediate concerns over their financial exposure. It also highlights the structural fragility of the US luxury retail market, a critical channel for their sales.

Among other notable declines, Thales shares are down 3.23% to 254.6 euros, while Capgemini sheds 1.52% to 145.35 euros and Saint-Gobain loses 1.21% to 83.44 euros. These drops affect various sectors, from defense to IT services and construction materials, indicating a broad-based risk aversion rather than a targeted sectoral movement.

Tech and Energy Sectors Strive to Limit Damage

Amid the luxury sector's downturn, a few stocks are standing out and performing well. STMicroelectronics leads the pack with a rise of 1.47% to 24.49 euros, benefiting from renewed interest in the semiconductor sector following record results from Taiwan's giant TSMC. Schneider Electric also shows a strong performance with an increase of 1.34% to 234.1 euros, driven by ongoing interest in companies involved in energy transition. EssilorLuxottica rounds out the top performers with a gain of 1.04% to 282.3 euros. Carrefour is up 0.83% to 13.92 euros, while Engie climbs 0.67% to 23.9 euros, benefiting from a favorable context in the energy sector. Despite these performances, they are not enough to reverse the overall trend in the Parisian market.
On a European level, other financial centers are also experiencing similar uncertainty to Paris, without any clear trend. The opening of Wall Street will be closely watched in the afternoon to see if the U.S. indices can provide a boost to European markets or, conversely, heighten the prevailing caution.