Paris Stock Market Hits Record High with LVMH Skyrocketing

The Paris stock market has reached a remarkable milestone, skyrocketing to an all-time high of 7,644 points, a spectacle considered to be a once-in-a-millennium occurrence. Central to this surge is the luxury conglomerate LVMH, which alone has propelled the market with a historic 14% rise in its stock price. This exceptional leap has permitted the company to reverse any losses incurred since August 2023, signaling a major comeback.

Impact of LVMH's Growth

Due to LVMH's significant weight in the CAC40, representing a record 15.75%, the company's trading activity dominated nearly 40% of the Paris market's business. This performance has not only reinforced its position but also driven the Euro-Stoxx50 to new historic highs, despite only modest contributions from other sectors.

The Role of Luxury Brands

Luxury brands have been at the forefront of the CAC40's performance. In one trading session, these brands, particularly LVMH, Hermès, and L'Oréal, accounted for an astounding 150% of the CAC40's weekly gains. The impact of luxury goods has been profound, dominating 100% of the CAC40's year-to-date advancements with only three stocks carrying 26% of the market capitalization.

Global Market Reactions

Contrastingly, Wall Street presented a mixed response, with the S&P500 and Nasdaq Composite juggling for consecutive records. The week's highlighted data release, the PCE price inflation index, held steady at +2.6% for December 2023, aligning with forecasts and indicating a stable economic outlook.

The Eurozone presented a dichotomy in consumer sentiment, seeing an uptick in France but a decline in Germany, shedding light on the divergent economic conditions within the region. The oil and euro markets showed signs of stabilization and modest gains respectively.

Corporate Performances

Several companies posted their financial outcomes, with LVMH announcing a stellar 13% organic sales increase in 2023 and an 8% rise in net income. Other notable companies like Stef and Rémy Cointreau also reported their sales figures, encapsulating the diverse corporate landscape and its influence on market trends.

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