Paris Stock Exchange: CAC 40 Falls Under Pressure from the Luxury Sector

The Paris Stock Exchange is having a difficult start to the week. The CAC 40, the flagship index of the Paris market, shows a significant decline. This drop is mainly due to the poor performance of luxury companies, which heavily weigh on the French stock market.

Bourse: le CAC 40 plombé par les mauvais résultats des groupes de luxe en Europe https://t.co/JqMu4Vryi5

— La Tribune (@LaTribune) July 15, 2024

The Paris Stock Exchange under pressure from the luxury sector

On Monday, July 15, 2024, the Paris Stock Exchange opened sharply lower. The CAC 40 dropped by 62.35 points, or 0.81%, to reach 7,661.97 points at 11:25 AM. This performance contrasts sharply with the previous Friday’s close, which saw the index rise by 1.27% and reach its highest level since June 12.

The giants of the luxury sector are the main culprits behind this stock market decline.

• LVMH saw its stock drop by 2.36%. It is now at 707.80 euros.
• Hermès was not spared, with a drop of 1.61%. This brings its stock to 2,135 euros.
• Kering suffered the most significant correction, losing 4.29% to fall to 324.70 euros.

These sharp declines are also explained by disappointing results published by other European players in the sector. Swiss watchmaker Swatch Group, for example, announced a staggering 70.5% drop in its net profit in the first half of 2024.

The Stock Market facing an uncertain economic and political context

The decline of the Paris Stock Exchange is also part of a broader movement affecting the main European financial markets. London fell by 0.70% and Frankfurt by 0.23%. This downward trend reflects investors’ concerns amidst an unstable economic and political environment.

The US political climate also influences stock markets. The assassination attempt on Donald Trump and the prospect of his possible re-election in November 2024 caused a surge in the dollar and US interest rates.

Today, the Paris Stock Exchange, along with other European financial markets, continues to navigate in uncertainty. Investors are awaiting clearer signals about the evolution of the global economy and upcoming monetary policies.