The CAC 40 processes its all-time high with a consolidation movement

Luxury and beauty weigh down the Paris stock market

The session was dominated by the striking disappointments of two giants in the French luxury sector. L'Oréal experienced the steepest drop in the index, plunging 6.7%, which marks the most significant correction for the cosmetics giant in several months. The company reported an acceleration in growth during the third quarter that fell short of analysts' expectations, while its management adopted a cautious tone regarding the beauty market's outlook for the remainder of the year. Hermès was not spared either, experiencing a decline of 2.27% despite a growth of nearly 10% in comparable data. Investors had set an even higher bar for the maison from Faubourg Saint-Honoré, reflecting the increasingly high demands of the market on luxury stocks. This double disappointment heavily impacted the entire index, as these two companies are among the largest market caps in Paris. Kering also suffered from this wave of sectoral mistrust, dropping 2.07%. STMicroelectronics rounds out the list of major declines with a decrease of 4.06%, highlighting the ongoing challenges faced by the semiconductor sector in a complex technological environment.

Edenred and Defense Sectors Stand Out

Defying the general trend, Edenred led the rankings with a 4.61% increase, marking its fifth consecutive session of gains. The prepaid services specialist, known primarily for its meal vouchers, is still riding the wave of enthusiasm sparked on Tuesday by the release of quarterly sales that exceeded market expectations. ArcelorMittal claimed the second spot with a 2.01% gain, as the steel giant benefited from renewed interest in industrial stocks. The defense sector stood out in this tense geopolitical context. Thales rose by 1.37%, buoyed by statements from Donald Trump, who cast doubt on his planned meeting with Vladimir Putin in Budapest, asserting he wanted to avoid a pointless discussion. These diplomatic uncertainties are mechanically reigniting interest in defense and armament groups. Real estate and consumer stocks also displayed some resilience: Unibail-Rodamco-Westfield gained 1.35%, Pernod Ricard 1.14%, while Vinci and LVMH advanced by 1.12% and 1.04%, respectively. This range of performances illustrates a market in a digestion phase after the historic surge the previous day, with investors adopting a selective approach that favors stocks with strong fundamentals.