Paris Stock Exchange: The CAC 40 at its peak - a promising first quarter

As the first quarter of 2023 approaches its end, let’s take a pulse of the stock market. The CAC 40 seems to be thriving, reaching a new record last Thursday at 8,253.59 points. But it’s not just the Paris Stock Exchange shining during this extended Easter weekend: Wall Street, the Nasdaq Composite, the Dow Jones, and the like are also showing strong performances. Detailed analysis!

Stock Market Boom: The CAC 40 on an Upward Trajectory Despite Uncertainties

Despite the ups and downs of the French economy, the CAC 40 has made headlines with its feats: crossing the 8,000-point threshold at the end of February, reaffirming its rise above 8,000 points in early March, and dazzling performances from the heavyweights of the Paris Stock Exchange. The latest statistics predict a continuation of this bullish trend.

Despite a tumultuous week, marked by a slight stability (+0.01%) at the end of the session on Thursday, the Paris Stock Exchange closed the month and the quarter in the green, thus achieving a remarkable feat. The flagship CAC 40 index climbed by a point to reach 8,205.81 points, with a morning peak at 8,243.33 points, further consolidating an already well-established upward trend.

This impressive climb was marked by a new absolute record, with a high reaching 8,253.59 points during the last session of the quarter. A performance all the more remarkable as it occurred on the eve of the Easter weekend, a traditionally quiet period on the stock markets.

According to Edouard Kerhor from Milleis Banque Privée quoted by TV5 Monde, this progression is fueled by the prospect of decreasing rates, thus favoring an optimistic and prosperous market. Despite ongoing uncertainties, the CAC 40 has recorded a spectacular rise of 8.78% since the start of the year, surpassing initial forecasts for the entire year of 2024 in just one quarter.

This feat was underscored by a fifth consecutive month of gains, with an increase of 0.66% this week and an impressive 3.51% rise in March. Despite this positive trend, some experts remain cautious about the future outlook, suggesting a possible correction next quarter.

American Indices Celebrating, the Euro-Stoxx50 More Reserved

While the Euro-Stoxx50 has shyly surpassed the 5,100-point mark, displaying an annual growth of 12.8%, its gain is only 0.1%. Meanwhile, the DAX40 continues to hover around the 18,500 points, without any significant variation.

Across the Atlantic, the S&P 500 is hovering around equilibrium this Thursday, but records an impressive rise of 10% since the beginning of the year. The index favored by American managers appears ready to post its best first quarter since 2019, with a performance of 13.07% at this time. On the other hand, the Dow Jones, up by 5.5% over the period, is on track to achieve its strongest quarter since 2021, with a growth of 7.76%. As for the Nasdaq Composite, it is not to be outdone, showing an annual increase of 9.2%.

Despite this upward trend, the first quarter of 2024 has been less dazzling than the previous year, where the market had leapt by 16.77%. Behind these impressive performances hides a familiar name: Nvidia, the leader in graphics card chips. The company has registered a growth of 83% in three months, after having already surged by nearly 240% in 2023.

According to Arnaud Cayla, Deputy CEO at Cholet Dupont AM, this optimism is fueled by the prospects of central banks cutting rates (Source: Les Echos). Investors are inclined to stay in the market, with no reason to sell.

Before the long Easter weekend, when Western markets close their doors for a few days, investors were reassured by the latest estimation of the US GDP growth for the fourth quarter. The upward revision of +0.2% brings the annual growth rate to 3.4%, according to the Commerce Department.