The CAC 40 Index Closes 0.02% Higher

The CAC 40 Index gained 1 points or 0.02 percent on Thursday to close at 8282 points. Gains were led by Capgemini (4.66%), Stellantis NV (4.04%) and Publicis (3.87%). Biggest losers were Hermes International (-3.10%), Essilor (-3.09%) and LVMH (-2.22%).

The CAC 40 inched 0.1% higher to close at 8,286 on Thursday, supported by gains in industrials and financials. Euro Area activity data pointed to solid Q3 growth, supported by improving industrial activity and a recovery in services following the initial impact of higher energy prices at the start of the Middle East conflict. France’s manufacturing output rose marginally in August. Safran added 0.8%, and Vinci rose 1.4%. Legrand climbed 1.4% after Deutsche Bank upgraded it to “Buy” from “Hold.” Stellantis jumped 4.3% after Arnaud Belloni was named CEO of Fiat, Abarth and Lancia in Europe. Financials advanced as the ECB is not expected to signal further tightening after September, with long-term inflation expectations well anchored. Markets expect a final rate hike on September 10th. Luxury stocks tumbled, with Hermes down 3.3%, as weak sales and earnings, cautious forecasts and limited signs of a rebound in wealthy shoppers’ spending continued to weigh on the sector.

The CAC 40 fell 0.2% to 8,263 on Thursday, extending losses for a fourth consecutive session and slipping to its lowest level since mid-June, led by weakness in the luxury sector. LVMH dropped 1.9%, while Hermès and Kering both shed 2.4%, as the sector remained under pressure despite early signs of stabilizing consumer sentiment. Investors remained cautious as stimulus measures in China, the industry's most important growth market, have yet to translate into a meaningful recovery in demand, leaving luxury groups struggling to regain momentum after the disruption caused by the Iran conflict. In contrast, Legrand rose 2.6% after Deutsche Bank upgraded the stock to "Buy" from "Hold." Further weighing on sentiment, final data showed the Composite PMI falling to 48.5 in August from 49.4 in July, as a sharper contraction in services (48 vs 49.6) more than offset an expansion in manufacturing (51.1 vs 49.8).