French luxury sees a spectacular revival, driven by LVMH and Kering

Industry Giants Lead the Way in a Euphoric Market

The movement is driven by nearly all major capitalizations. KERING posts the strongest increase (+5.44%), followed by LVMH (+4.95%), Hermès (+4.84%), and CHRISTIAN DIOR (+4.74%). The contrast is clear with comparable sectors: wines and spirits, for example, only rise by 0.29%, indicating that the day's momentum is specific to luxury.
On the context side, the VIX drops significantly (-16.2%, to 18.62), reflecting a clear easing of risk aversion, amid hopes for a ceasefire between Iran and the United States, which also pushes Brent crude below $90. This relaxed environment particularly benefits cyclical stocks exposed to global consumption, even as the ECB has just raised its rates by 25 basis points.

Technical rebound or start of a comeback?

The sector's technical indicators provide a nuanced reading. The sector's weighted RSI is at 58.9, in bullish territory but still far from being overbought, leaving room for progression before any potential slowdown. The weighted average price has moved back above the 50-day moving average, indicating a positive medium-term momentum, while the sectoral MACD has crossed its signal line, confirming an ongoing bullish dynamic.

However, a caveat: the 200-day moving average remains above current prices, indicating an underlying downtrend following several challenging quarters. In the broader sector, a few specific signals warrant caution, with Interparfums (RSI at 71) and MAISON POMMERY (73) already in the overbought zone.
Overall, the session appears more like a rebound fueled by easing geopolitical risk than a confirmation of a structural trend reversal, which would require a sustained reclaiming of longer-term averages.